Nityas Gems & Jewellery is raising ₹108 Cr on the mainboard between 30 September and 5 October 2026, listing on 8 October. It designs and makes lab-grown diamond-studded gold jewellery in Surat and sells it to retailers. Revenue has doubled every year for two years and the profit has done better than that. There is one thing wrong with it, and it is the thing the money is being raised for. This note goes through the business, the industry it sits in, the numbers, the subscription book as it stands today, and why I would apply for it as a long-term holding and not as a listing-day trade.
What they do
One plant of about 7,000 sq ft in Surat, capacity around 360 kg of jewellery a year, 32,000 plus designs. The company buys gold from bullion dealers and lab-grown stones from Surat CVD growers, sets them into gold jewellery and sells to 323 retailers and wholesalers across 18 states and 2 union territories. That B2B channel was 98.4% of revenue in the first half of FY26. The direct-to-consumer brand, Ayaani Diamonds, was bought in July 2025 for ₹1 Cr with a negative net worth. It has 10 stores in 8 cities and an online shop, and it was 1.5% of revenue. The prospectus lists exports to the UAE, Australia, Canada, Taiwan and Kenya, but they are order-driven, not contracted: domestic sales were 100% of revenue in FY23, 99.2% in FY24, 99.9% in FY25 and 96.9% in the first half of FY26. This is an Indian B2B jewellery manufacturer with a small retail brand attached. It is not an export story and it is not yet a consumer brand story.
The industry it sits in
Two things are true at the same time about lab-grown diamonds and a post that mentions only one of them is misleading.
Volumes are rising fast. India exported 18.84 million carats of polished lab-grown diamonds in the year to March 2026, up 31%, and for the first time more than natural diamonds at 16.0 million carats. In 2015-16 the number was 10,000 carats. India is the second largest producer after China with about 15% of global output.
Prices are collapsing. The value of those exports peaked at $1.68 billion in FY23 and has fallen three years running to $1.13 billion in FY26, down 10.6% in the last year alone, because the average export price went from $355 a carat in FY23 to about $60 in FY26. Wholesale lab-grown prices are down 96% since 2018 and 13% year on year to the June 2026 quarter. The fall is slowing but it has not stopped.
The money has moved from the loose stone to the finished piece. Gold jewellery studded with lab-grown diamonds was India's fastest growing export category in FY26 at $1.43 billion, up 31.3%, inside a total gem and jewellery export of $27.72 billion that fell 3.3%. That finished-jewellery segment is exactly where Nityas sits, and it is the strongest argument for the company. The weaker point is that Nityas sells 97% of it in India, so it rides the domestic retail demand for lab-grown gold jewellery rather than the export line. The only domestic market estimate in the record is CareEdge's $264.5 million for 2022 and about $300 million for 2023. Nityas's FY26 revenue of ₹203 Cr is roughly $24 million, which makes it a meaningful player in a small market, not a small player in a big one.
The issue
Price band ₹70 to ₹75, lot of 200 shares, ₹15,000 minimum. ₹108.35 Cr, entirely a fresh issue, no offer for sale. ₹70 Cr goes to working capital and ₹38.35 Cr to general corporate purposes. Promoters go from 58.10% to 43.51% and nothing is pledged. Post-issue market cap ₹432 Cr at the top of the band, which is 19.4x FY26 earnings on an EPS of ₹3.87, 4.96x book and 14.2x EV to EBITDA. Lead manager is Choice Capital, registrar Bigshare.
What works
Revenue ₹53.66 Cr in FY24, ₹96.85 Cr in FY25, ₹202.89 Cr in FY26. Profit after tax ₹4.02 Cr, ₹9.79 Cr, ₹22.32 Cr. EBITDA margin went from 10.2% to 15.3% while revenue quadrupled, which means the growth is not being bought with price. Return on capital employed 42.9%, return on net worth 43.8%. Total debt ₹9.08 Cr, debt to equity 0.29. Contingent liabilities ₹2.68 Cr, one income tax appeal. No criminal or SEBI proceedings against the company or promoters. Related party dealings are limited to executive pay and office rent. Customer concentration has fallen every year: the top ten were 97% of revenue in FY23, 84% in FY24, 77% in FY25 and 55.5% in FY26. On the listed comparison, Goldiam International, the only listed lab-grown jewellery peer, trades at 22 to 27x, Golkunda at about 17x and Renaissance at 12 to 19x. At 19.4x with this growth rate, the price is not the problem.
What does not
The company has never generated cash from operations. Net cash used in operating activities was ₹1.05 Cr in FY24, ₹10.05 Cr in FY25 and ₹14.73 Cr in FY26, about ₹28 Cr out over three years against ₹36 Cr of reported profit. The profit went into inventory, which rose from ₹5.1 Cr to ₹25.5 Cr to ₹41 to 42.5 Cr, and into receivables, which went from ₹4.1 Cr to ₹8.8 Cr to ₹16 to 22 Cr. Inventory holding is 59 days and receivables 22 days, which are not bad numbers for jewellery; the problem is that the business is growing faster than its cash can fund, and the gap has been plugged with ₹29 Cr of borrowing and equity over three years. The company's own estimate of working capital needed in FY27 is ₹110 Cr against ₹45 Cr in FY26. The ₹70 Cr being raised covers roughly one year of growth at the current burn. If the growth continues, they will need more.
Supplier concentration is high and has not improved the way customer concentration has: the top ten suppliers were 82% of purchases in FY23, 87% in FY24, 94% in FY25 and 91% in the first half of FY26, with the single largest at 58%. Everything is made in one building in Surat. And ₹42 Cr of inventory is held in an input whose price fell 13% last year. A write-down would not be a surprise.
🔴 Watch the QIB book. The anchor book was scheduled for 29 September. The institutional portion on offer is still the full 71.78 lakh shares worth ₹53.84 Cr, which means no anchor allocation was made. At the end of day two the QIB book stood at 0.00x, non-institutional at 0.16x, retail at 0.83x, overall 0.32x. Grey market premium has slipped from ₹9 to ₹5. With no anchor there is no lock-in on any part of this issue; all of it can be sold on 8 October. If the ₹53.84 Cr QIB portion is subscribed three times or more by the close on 5 October, institutions have looked at the cash flow and bought anyway. If it stays near zero, retail is the only bid and the stock will find its own level after listing.
Verdict: a long-term bet. Apply for that, not for listing day
This is a real business in the right part of the lab-grown market, growing at 100% a year, priced at 19x, with promoters who are putting money in rather than taking it out. On every measure except one it is a company I would want to own for three to five years. The one measure is cash. A business that has reported ₹36 Cr of profit and produced none of it in cash, and is now raising ₹70 Cr to fund the same working capital that has absorbed every rupee so far, has to show that the model converts. That evidence will come in the first-half FY27 numbers, around November 2026.
Does that mean wait? No. If you are buying this for three to five years, the difference between ₹75 at the IPO and ₹65 after a weak listing is not what decides the outcome; whether the cash flow turns is. A 10% premium on a company that goes on to compound is irrelevant, and waiting for a dip on a stock that may never give one is how long-term investors miss the bus. So apply at ₹75 if your horizon is years, and ignore the grey market premium either way.
What I would not do is apply for the listing pop. A 100% free float, no anchor lock-in and an institutional book at zero on day two make 8 October a coin toss, and a stock bought for a 7% gain that opens at a 7% loss becomes a reluctant long-term holding, which is the worst kind. And I would size it as a bet, not a conviction position, until the cash conversion shows up. Buy what you can afford to hold through a bad half-year.
Levels
₹75 at the IPO is 19.4x FY26 earnings and a fair price for the growth. If the listing is weak and the stock trades at ₹55 to ₹65, that is 14 to 17x, the range of the traditional jewellery peers, and an add for anyone already holding rather than a reason to regret applying. Above ₹85 to ₹90 you are paying Goldiam-style multiples of 22x and more for a company that has not yet turned profit into cash; that is the point to stop adding and let the H1 FY27 cash flow make the case. The number to watch in November is one line: net cash from operating activities. Positive, and the position earns a larger weight. Negative again, and the thesis has a problem no amount of revenue growth fixes.
Sources: Red Herring Prospectus and SEBI abridged prospectus; Chittorgarh and NSE subscription data as at close of 1 October 2026; GJEPC export statistics for FY26 as reported by Diamond World and IDEX Online; CareEdge Ratings report on lab-grown diamonds, May 2024; Edahn Golan lab-grown wholesale price index, Q2 2026.
For educational purposes only. Not investment advice. Intrynsic.ai is not a SEBI-registered investment adviser. Do your own research.