Divine Hira Jewellers Limited is set to enter the public markets with its upcoming Initial Public Offering (IPO). The Mumbai-based jewellery company has established itself as a trusted name in the gold jewellery wholesale business. This article provides a comprehensive overview of the Divine Hira Jewellers IPO, offering potential investors detailed insights into the company and its public offering.
About Divine Hira Jewellers Company
Divine Hira Jewellers Limited specializes in designing and marketing premium 22 Karat gold hallmarked jewellery. The company was initially established as a proprietorship firm in 1997 and later evolved into its current form. Based in Mumbai’s famous Zaveri Bazar, a renowned bullion market, the company caters primarily to wholesalers, showrooms, and retailers across Mumbai, Maharashtra.
The company offers a diverse range of jewellery designs tailored to regional preferences. Their product portfolio includes necklaces, mangalsutras, chains, malas, rings, pendants, bracelets, bangles, kadas, coins, and wedding jewellery. Divine Hira Jewellers recently expanded their offerings to include antique gold jewellery, blending historical artistry with modern trends.
While the company doesn’t have an in-house manufacturing facility, they outsource jewellery production to skilled artisans. Their designs are crafted by both in-house and freelance designers. The company procures gold from bullion dealers and is working toward establishing direct import channels for increased efficiency. Their product range covers wedding and festive jewellery to daily wear items, primarily targeting mid-market and value segments.
Divine Hira Jewellers IPO Details
The Divine Hira Jewellers IPO is structured as a fixed-price issue with the following key details:
| Parameter | Details |
|---|---|
| Issue Type | Fixed Price Issue |
| Issue Size | ₹31.84 crores |
| Fresh Issue | 35.38 lakh shares |
| Issue Price | ₹90 per share |
| Face Value | ₹10 per share |
| Listing | NSE SME |
| Book Running Lead Manager | Horizon Financial Pvt Ltd |
| Market Maker | Giriraj Stock Broking Private Limited |
Divine Hira Jewellers IPO Timeline
The complete timeline for the Divine Hira Jewellers IPO process is as follows:
| Event | Date |
|---|---|
| IPO Opening Date | March 17, 2025 |
| IPO Closing Date | March 19, 2025 |
| UPI Mandate Deadline | March 19, 2025 (5 PM) |
| Basis of Allotment | March 20, 2025 |
| Refund Initiation | March 21, 2025 |
| Credit of Shares to Demat Account | March 21, 2025 |
| Listing Date | March 24, 2025 |
| Mandate End Date | April 1, 2025 |
Divine Hira Jewellers Promoters
The company is backed by experienced promoters with extensive industry knowledge:
- Hirachand Pukhraj Gulecha – Managing Director & Chairman
With over 30 years of industry experience, he has been involved in every aspect of the gold manufacturing business. He possesses a keen eye for product quality and stays updated with market trends. - Niraj Hirachand Gulecha – Whole Time Director
With more than two decades of expertise in gold manufacturing and ornamentation, he has managed a team of 10 individuals. His market insight and strong networking connections provide valuable business expansion opportunities. - Khushbu Niraj Gulecha – Promoter
- Hirachand P Gulecha (HUF) – Promoter
Lot Size and Investment Details
| Parameter | Details |
|---|---|
| Minimum Lot Size | 1,600 shares |
| Minimum Investment Amount | ₹1,44,000 |
| Maximum Retail Application | 1 lot (1,600 shares) |
| NII Minimum Application | 2 lots (3,200 shares) |
| NII Minimum Investment | ₹2,88,000 |
Reservation in the Issue
| Category | Shares Offered | Percentage |
|---|---|---|
| Retail Individual Investors | 16,80,000 | 47.49% |
| Non-Institutional Investors | 16,80,000 | 47.49% |
| Market Maker | 1,77,600 | 5.02% |
| Total | 35,37,600 | 100.00% |
Divine Hira Jewellers Company Financials
Here’s a look at how much money Divine Hira Jewellers has made and spent in recent years.
| Year | Revenue (₹ Crore) | Profit After Tax (₹ Crore) | Net Worth (₹ Crore) | Borrowings (₹ Crore) |
|---|---|---|---|---|
| FY 2022 | 142.40 | 0.20 | 3.50 | 10.50 |
| FY 2023 | 246.44 | 0.91 | 4.41 | 11.80 |
| FY 2024 | 183.25 | 1.48 | 6.89 | 12.93 |
| Sept 30, 2024 | 136.03 | 2.50 | 12.30 | 12.93 |
Revenue is the money they earn from selling jewellery. It grew a lot from 2022 to 2023 but dropped in 2024. Profit after tax is what’s left after paying bills and taxes—it’s been going up every year. Net worth shows the company’s value, and it’s growing strong. Borrowings are loans they owe, which have gone up a bit. By September 2024 (half of FY 2025), they’re doing well with more profit and a higher net worth.
IPO Subscription Status
As of March 18, 2025, the subscription details are:
| Category | Subscription (times) |
|---|---|
| Non-Institutional Investors | 0.39x |
| Retail Individual Investors | 2.89x |
| Total | 1.64x |
Objects of the Issue
The company plans to utilize the IPO proceeds for the following purposes:
| Purpose | Amount (₹ crores) | Percentage |
|---|---|---|
| Working capital requirements | 19.00 | 59.67% |
| Debt reduction | 3.00 | 9.42% |
| Issue related expenses | 3.65 | 11.46% |
| General corporate purposes | 6.19 | 19.43% |
| Total | 31.84 | 100% |
Company’s Future Plans
Divine Hira Jewellers aims to enhance its operational efficiency by establishing direct gold import channels. The company is also expanding its product range with a recent focus on antique gold jewellery that blends traditional craftsmanship with contemporary designs. The significant allocation of IPO proceeds toward working capital suggests plans for business expansion and increased inventory management capabilities.
Strengths and Risks
Strengths:
- Experienced management with strong industry expertise and leadership vision
- Diverse product portfolio covering traditional, modern, and custom designs
- Strict quality control ensuring standardized, high-purity gold jewelry
- Deep understanding of customer preferences and market trends
- Hallmark certification and unique identification for authenticity assurance
- Reliable job workers and an extensive vendor network
- Strong focus on innovative and customer-centric jewelry designs
- Commitment to customer satisfaction with timely deliveries and support
- Long-term client relationships built on trust and reliability
Risks:
- Revenue depends on a few customers, affecting financial performance
- Reliance on few suppliers may disrupt raw material availability
- Failure to obtain regulatory approvals may impact business operations
- High cost of gold bullion affects profitability and cash flow
- Sales fluctuate seasonally, impacting revenue and operational stability
- Competitive market pressures may reduce pricing power and margins
- Inventory mismanagement can impact profitability and liquidity position
- Regulatory changes may require costly adjustments in business practices
Official RHP and DRHP Links
The Red Herring Prospectus (RHP) and Draft Red Herring Prospectus (DRHP) are official documents with all the IPO details. Here’s where you can find them on SEBI’s website:
Frequently Asked Questions (FAQs)
1. What is the price band for Divine Hira Jewellers IPO?
Divine Hira Jewellers IPO is a fixed-price issue priced at ₹90 per share with a face value of ₹10 per share.
2. When will Divine Hira Jewellers shares be listed?
The shares are scheduled to be listed on March 24, 2025, on the NSE SME platform.
3. What is the minimum investment required for retail investors?
Retail investors need to apply for a minimum of 1 lot (1,600 shares), requiring an investment of ₹1,44,000.
4. How will the company use the IPO proceeds?
The company will primarily use the proceeds for working capital requirements (59.67%), debt reduction (9.42%), issue-related expenses (11.46%), and general corporate purposes (19.43%).
5. Who are the lead managers for the Divine Hira Jewellers IPO?
Horizon Financial Pvt Ltd is the book-running lead manager for the IPO.
6. What type of business does Divine Hira Jewellers engage in?
Divine Hira Jewellers specializes in designing and marketing 22 Karat gold jewelry, focusing on wholesale supply to showrooms and retailers in Mumbai.
7. Who can apply for the Divine Hira Jewellers IPO?
Both retail individual investors and non-institutional investors can apply, with specific lot sizes designated for each category.
Disclaimer
Investing in stocks or IPOs can be risky. The information in this article is for learning only and not advice to buy or sell shares. Prices and company performance can change, and you might lose money. Always talk to a financial advisor before investing, and do your own research. We’re not responsible for any money decisions you make based on this article.
