Nityas Gems and Jewellery has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise funds through an initial public offering (IPO). The move is part of the company’s strategy to strengthen its financial position and support its growing operations in the jewellery segment.
The proposed IPO will consist entirely of a fresh issue of 1.44 crore equity shares, with no offer-for-sale component. This means all the funds raised will go directly to the company rather than existing shareholders. The issue structure highlights the company’s focus on raising capital for expansion rather than providing an exit route to promoters or early investors.
The company has not yet announced the price band or exact issue size, but the filing marks its formal entry into India’s primary market pipeline, which has seen increasing activity in recent months.
Funds to Be Used Mainly for Working Capital Needs:
A significant portion of the IPO proceeds around ₹70 crore is planned to be used for working capital requirements. The remaining funds will be allocated toward general corporate purposes, including operational expansion and business support activities.
Working capital is critical for jewellery businesses, which require continuous investment in raw materials such as gold and diamonds. By strengthening its working capital base, Nityas Gems aims to ensure smoother inventory management, faster business cycles, and improved operational efficiency.
The decision also reflects the broader trend among mid-sized companies opting for IPOs to fund internal growth rather than relying solely on debt financing. In a sector where price volatility and inventory costs play a major role, having adequate liquidity can be a key competitive advantage.
Business Model Combines B2B Manufacturing and Retail Expansion:
Nityas Gems operates through a dual business model, combining business-to-business (B2B) manufacturing with direct-to-consumer (D2C) retail operations. On the B2B side, the company manufactures and supplies diamond-studded gold jewellery to retailers and wholesalers across the country.
At the same time, it has been expanding its retail presence through its subsidiary Ayaani Diamonds and Jewellery, which follows an omnichannel strategy. This includes both physical retail and digital platforms, allowing the company to reach a wider customer base.
This hybrid approach helps the company balance stable bulk orders from B2B clients with higher-margin retail sales. It also allows Nityas Gems to adapt to changing consumer preferences, especially as online jewellery purchases gain traction in India.
Financial Growth Signals Expansion Momentum:
The company’s financial performance has shown strong growth in recent years. Revenue increased significantly to ₹96.8 crore in FY2025 from ₹53.6 crore in the previous year, reflecting a growth rate of over 80%. Profit also more than doubled to ₹9.7 crore during the same period. For the six months ended September 2025, the company reported revenue of ₹88.5 crore and a profit of ₹8.5 crore, indicating continued momentum in its business operations.
Nityas Gems competes with listed players such as Golkunda Diamonds & Jewellery, Goldiam International, and Renaissance Global, all of which operate in similar segments of the jewellery market. The IPO is expected to help the company strengthen its competitive position and expand its market share.
Choice Capital Advisors has been appointed as the merchant banker for the issue, and the shares are expected to be listed on stock exchanges after regulatory approvals and completion of the IPO process. Overall, the IPO filing signals the company’s intent to scale up operations, improve liquidity, and tap into the growing investor interest in India’s consumer and retail-driven sectors.
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