Nityas Gems and Jewellery IPO subscribed 31% so far on Day 2; retail investors lead demand

Reports coming in for today mention that The initial public offering (IPO) of Nityas Gems and Jewellery Limited saw a subdued demand on the second day of bidding, with the offering receiving 31 percent subscription, as of 11:00 am on October 1, as per NSE data.

The Rs 108.42-crore IPO received bids for 45,36,400 shares against 1,44,56,000 shares on offer. Retail market participants led the demand, with their portion subscribed 82 percent, while the non-institutional market participants (NII) category was subscribed 16 percent.

In the grey market, Nityas Gems and Jewellery shares were trading at a premium of nearly 8 percent on the morning of October 1, according to InvestorGain.

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Grey market premiums are unofficial indicators of market sentiment and do not guarantee the actual stock-exchange debut price.

The firm has set the IPO price range at Rs 70-75 per share. The public offering will stay open until October 5. The IPO comprises an entirely fresh offering of 1.44 crore equity shares, with no offer-for-sale component.

At the upper price range of Rs 75 per share, the firm aims to mobilize Rs 108.42 crore through the offering.

The anchor book opened on September 29, a day ahead of the public subscription.

The IPO allotment is likely to be finalised on October 6, while trading in the firm's equity shares is anticipated to commence on the bourses on October 8.

Nityas Gems and Jewellery plans to utilise Rs 70 crore of the net IPO proceeds towards its working capital requirements. The remaining amount will be used for general corporate purposes.

The Gujarat-based firm manufactures diamond-studded gold jewellery and operates primarily under a business-to-business (B2B) model, manufacturing jewellery products for retailers and wholesalers.

The firm additionally has a direct-to-consumer (D2C) business through its subsidiary, Ayaani Diamonds and Jewellery, which operates an omnichannel retail business.