Advit Jewels share price slides 5% after strong 37% market debut. Should you buy, sell or hold?

Shares of Advit Jewels plunged as much as 5% to an intraday low of Rs 177.65 shortly after making a stellar stock market debut, having listed at Rs 188.90, a 37% premium to its issue price, on Wednesday. The listing was in line with unlisted market expectations. The grey market premium (GMP) on the stock hovered around Rs 50 ahead of the listing, implying a premium of nearly 36% over the upper issue price.

Advit Jewels’ IPO received an overwhelming response across investor categories, with the issue being subscribed 212.63 times against the 83.97 lakh shares on offer. Demand was particularly strong among institutional and high-net-worth investors.

The Non-Institutional Investor (NII) category was subscribed 536.38 times, while Qualified Institutional Buyers (QIBs) bid 174.98 times the shares reserved for them. Retail investors also showed significant interest, with their quota subscribed 95.30 times.

What should you do with Advit Jewels shares?

“Advit Jewels remains a relatively small and young company with limited geographic diversification, making the stock susceptible to volatility in the near term,” Shivani Nyati, Head of Wealth at Swastika Investmart, said.

Investors who received allotment in the IPO can continue to hold the stock from a short-to mid-term perspective, while short-term traders may consider booking partial or full profits after the strong listing gains. Fresh investors are advised to wait for one or two quarterly results before taking any meaningful exposure, she said, adding that the stop loss is Rs 165.

Research firm Equivision assigned a “Subscribe” rating to the issue, citing the company’s strong revenue growth, improving profitability and established presence in the organised jewellery market.

Also read: Advit Jewels shares list at 37% premium over IPO price on NSE, BSEThe brokerage noted that Advit Jewels has benefited from expanding product offerings, increasing customer demand and participation in major jewellery exhibitions. It also highlighted the company’s plans to strengthen its brand presence and expand its customer network across Tier-1 and Tier-2 cities.

However, analysts flagged risks including dependence on gold, diamond and precious stone prices, customer concentration and the company’s reliance on Jaipur-based manufacturing operations.

Advit Jewels has reported steady growth in both revenue and profitability. For the nine months ended December 31, 2025, the company recorded revenue from operations of Rs 123.79 crore and net profit of Rs 25.44 crore, reflecting strong demand for its products and improving operational efficiency.

Advit Jewels plans to deploy the funds to strengthen its balance sheet and accelerate business growth. Around Rs 65 crore will be used to meet incremental working capital requirements, supporting day-to-day operations and expansion initiatives.

Another Rs 65 crore has been earmarked for the repayment or prepayment of existing borrowings, a move expected to reduce debt and improve the company’s financial health. The remaining proceeds will be utilised for general corporate purposes, providing greater operational flexibility and supporting future strategic initiatives.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)