Company Overview

Nityas Gems and Jewellery Limited is an integrated manufacturer and retailer of lab-grown diamond studded gold jewellery operating through both B2B and D2C channels. The company designs, manufactures and sells jewellery through its B2B segment supplying to retail chains, standalone retailers and wholesalers, and through its D2C operations under the 'Ayaani' brand via omnichannel retail platform comprising online storefront and 10 physical retail stores across 8 cities.

Subsidiaries: The company has two subsidiaries - Ayaani Diamonds and Jewellery Private Limited (50.04% owned, acquired July 2025) operating D2C retail business, and Ratna LGD Private Limited (51.00% owned) engaged in manufacturing and trading of jewellery products.

Offer Details

IPO Structure: The company is launching an Initial Public Offering of 14,456,000 equity shares at ₹75 per share to raise ₹1,083.50 million. The price band is set at ₹70-75 per share with the issue price finalized at ₹75.

Allocation: The net issue of 14,356,000 shares includes allocation to QIBs (50%), Non-Institutional Investors (15%), and Retail Investors (35%), with reservation of 100,000 shares for employees.

Objects: Net proceeds of ₹914.66 million (after issue expenses of ₹168.84 million) will be utilized for working capital requirements (₹700 million) and general corporate purposes (₹214.66 million).

Financial Performance

Strong Growth Trajectory: The company has demonstrated impressive financial performance with revenue growing from ₹536.55 million in FY24 to ₹968.45 million in FY25 and ₹2,028.94 million in FY26. Profit After Tax increased from ₹40.24 million in FY24 to ₹97.88 million in FY25 and ₹223.15 million in FY26, with PAT margins improving from 7.50% to 11.00% over the three-year period.

Profitability Metrics: EBITDA margins improved from 10.21% in FY24 to 15.27% in FY26, while Return on Net Worth stood at 43.75% in FY26 (down from 122.44% in FY24 due to capital base expansion). Debt-Equity ratio improved to 0.29 in FY26 from 0.69 in FY24.

Risk Factors

Business Concentration Risks: The company faces significant customer concentration with top 10 customers contributing 55.49% of revenue in FY26 (84.24% in FY24). Supplier concentration is also high with top 10 suppliers accounting for 86.16% of purchases in FY26, primarily gold (72.33%) and lab-grown diamonds (18.44%).

Market & Operational Risks: The business is working capital intensive with working capital requirement of ₹449.46 million as of FY26. The company depends on price volatility of gold and lab-grown diamonds, faces seasonal demand patterns (56.28% of FY26 revenue in second half), and operates in a highly competitive jewellery market.

Regulatory & Compliance Risks: The company has pending income tax dispute for AY 2023-24 involving ₹28.84 million under appeal and an FIR regarding alleged misappropriation of inventory at Ayaani's Jodhpur store involving ₹1.33 million.

Management & Ownership

Promoter Background: The company is promoted by Rajnikant Lallubhai Chanchad (Chairman and MD with 29 years industry experience), Sonalben Rajnikant Chanchad (Executive Director), and Savaliya Dhruv Janakbhai (Non-Executive Director).

Shareholding Pattern: Pre-IPO promoter holding was 100%, which will dilute to 43.51% post-IPO. The board includes three independent directors and key managerial personnel including CFO Denish Bharatbhai Kalyanpremchandwala and Company Secretary Manvi Meet Shah.

Market & Industry Context

Industry Positioning: The Indian lab-grown diamond jewellery market is projected to grow from ₹34,501 million in CY25 to ₹71,890 million by CY30 (CAGR 15.8%). Lab-grown diamonds are typically 60-80% more affordable than natural diamonds, with growing preference among millennials and Gen Z consumers for sustainable and ethical jewellery options.

Competitive Landscape: The company competes with established players including Golkunda Diamonds, Goldiam International, and Renaissance Global, as well as numerous organized and unorganized players in both natural and lab-grown diamond segments.

Legal & Regulatory Compliance

Approvals Obtained: The company has received SEBI observation letter, in-principle listing approvals from BSE and NSE (June 18, 2026), and maintains various statutory registrations including GST, factory license, and BIS registration.

Corporate Governance: The prospectus includes detailed disclosures of related party transactions totaling ₹295.19 million in sales to related parties in FY26. All directors and the CFO have certified prospectus accuracy and compliance with Companies Act and SEBI regulations.

Additional Information

Employee Base: As of August 31, 2026, the company had 192 employees with high attrition rate of 46.41% in FY26, primarily among karigars (55.45%) and operational staff.

Geographic Focus: 97.44% of FY26 revenue came from domestic market, with concentration in Gujarat, Karnataka, Maharashtra, Telangana and Tamil Nadu (85.03% of revenue).

Issue Timeline: Bid/issue period runs from September 30 to October 5, 2026, with anchor investor bidding on September 29, 2026. The issue is managed by Choice Capital Advisors with Bigshare Services as registrar.