Why Nityas Gems IPO Could Be a Strong Long-Term Bet: Analyst Insights

Nityas Gems IPO: A Promising Long-Term Investment Opportunity

Analysts highlight the potential of Nityas Gems as a strong contender in the growing lab-grown diamond market.

Understanding Nityas Gems’ Business Model

Nityas Gems operates an integrated business model that encompasses the entire value chain of lab-grown diamond jewellery. This includes raw material procurement, product design, manufacturing, quality control, distribution, and retail operations. The company caters to both B2B and D2C segments, supplying to organized retailers, standalone retailers, and wholesalers, while also leveraging its subsidiary, Ayaani Diamonds and Jewellery, for direct consumer sales.

The IPO price band is set between ₹70 and ₹75 per share, with a minimum investment of ₹15,000 for retail investors. The funds raised will primarily support the company’s working capital needs, which is crucial for sustaining its manufacturing and distribution capabilities.

Market Sentiment and Subscription Status

As of midday on the first day of bidding, the IPO has seen a lukewarm response, with only 11% of the issue subscribed. The retail portion has been booked 0.30 times, while the non-institutional investor segment is at just 0.05%. The grey market premium (GMP) has also seen a decline, currently trading at ₹78, reflecting a modest increase of 4% from the IPO price.

Despite the slow start, analysts believe that Nityas Gems is well-positioned to capitalize on the increasing demand for lab-grown diamonds, particularly in Tier-2 and Tier-3 cities where affordability is becoming a key driver of consumer choice.

Analyst Ratings and Long-Term Outlook

Analysts from Anand Rathi have assigned a ‘Subscribe for Long Term’ rating to the IPO, citing the company’s integrated model and in-house manufacturing capabilities as significant advantages. They note that while the valuation appears fully priced at 19.4x FY26 P/E and 14.8x FY26 EV/EBITDA, the growth potential in the lab-grown diamond segment justifies a long-term investment perspective.

Similarly, Master Capital has emphasized the company’s diverse customer base, which includes notable names like GIVA and ONYA, as a strong indicator of its market presence. They encourage investors to consider the IPO as a viable long-term investment opportunity, particularly as consumer preferences shift towards more affordable and sustainable jewellery options.

Key Highlights

• Nityas Gems IPO price band is set at ₹70 to ₹75 per share.
• The IPO is open for bidding until October 5, with a minimum investment of ₹15,000.
• As of midday, the IPO was subscribed only 11% with retail portion booked at 0.30 times.
• Analysts recommend a ‘Subscribe for Long Term’ rating, citing growth potential in the lab-grown diamond market.
• The grey market premium has decreased, currently trading at ₹78.

Investor Note: Investors should weigh the long-term growth potential of Nityas Gems against current market sentiment and subscription rates. Monitoring the company’s execution and scalability in the D2C segment will be crucial for assessing future performance.