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CEPA completes 3 years; powering India-UAE trade and economic ties

Bilateral gem and jewellery trade surged from US$ 20.88 billion in FY2022 to US$ 28.15 billion in FY2024, reflecting a robust 35% increase

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The *Comprehensive Economic Partnership Agreement (CEPA)* between *India and the UAE*, formalised on 18th February 2022, has profoundly strengthened economic ties between the two nations. As we commemorate its third anniversary, it is evident that CEPA has significantly enhanced trade opportunities, particularly for India’s gem and jewellery industry.

Since CEPA’s implementation, trade between India and the UAE has witnessed remarkable growth. The bilateral gem and jewellery trade surged from US$ 20.88 billion in FY2022 to US$ 28.15 billion in FY2024, reflecting a robust 35% increase. India’s gem and jewellery exports to the UAE also soared by over 60%, from US$ 4.95 billion in FY2022 to US$ 8.04 billion in FY2024.

Notably, UAE’s share in India’s total exports rose from 13% in FY2022 to 25% in FY2024, overtaking Hong Kong as India’s second-largest export market. This underscores the transformative impact of CEPA on India’s trade dynamics.

One of the most significant benefits of CEPA has been the duty-free access for all gem and jewellery products, including gold, silver, and platinum jewellery, along with polished diamonds and gemstones.This development has motivated Indian exporters to increase their supply of various gem and jewellery items to the UAE, capitalising on the enhanced market access provided by the agreement.

This policy shift has led to substantial growth in key export categories:

Plain Gold Jewellery: Exports surged by 127.62%, reaching US$ 4,240 million in FY2024.

Studded Gold Jewellery: Increased by over 50%, from US$ 917 million in FY2022 to US$ 1,382 million in FY2024.

Worked Lab-Grown Diamonds: Witnessed a 58.16% growth, reaching US$ 172 million in FY2024.

Platinum Jewellery: Recorded a staggering 820.87% increase, reaching US$ 23 million.

Coloured Gemstones: Grew by 17.19% to US$ 9.34 million

*Kirit Bhansali*, Chairman, GJEPC, said, “The India-UAE CEPA has propelled our gem and jewellery exports to new heights, growing by over 60% from US$ 4.95 billion in FY2022 to US$ 8.04 billion in FY2024. The UAE now accounts for nearly a quarter of India’s total gem and jewellery exports, surpassing Hong Kong. The duty-free advantage has unlocked immense opportunities, particularly in plain gold jewellery, which saw a 127% surge. As we celebrate three years of CEPA, we remain committed to strengthening this vital partnership and exploring new avenues for growth.”

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Jewellery Sector IPOs: Proceeds Used For Debt Reduction, Inventory Financing, Store Or Capacity Expansion

How Lalithaa, Shankesh, Augmont, Priority Jewels and Deepa Jewellers Turned March–September 2026 Into The Busiest Primary-Market Season The Organised Jewellery Trade Has Seen

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The last six months have delivered the most active stretch of primary-market activity the Indian organised jewellery sector has seen in years. Between March and September 2026, at least five jewellery-linked companies — Lalithaa Jewellery Mart, Shankesh Jewellers, Augmont Enterprises, Priority Jewels and Deepa Jewellers — took the IPO route, collectively seeking to raise well over Rs 3,400 crore. A further wave, led by Nityas Gems and Jewellery and several smaller manufacturers, is queued behind them.

The common thread across issuers is capital intensity. Jewellery retail and B2B manufacturing are working-capital-hungry businesses — inventory, gold-purchase schemes and store rollouts all consume cash faster than they generate it — and IPO proceeds have been directed almost uniformly toward debt reduction, inventory financing and store or capacity expansion rather than diversification.

Investor response has been mixed but broadly favourable. Lalithaa’s Rs 1,700-crore issue and Augmont’s Rs 825-crore issue both drew triple-digit institutional demand and listed at premiums above 20%; Shankesh Jewellers, by contrast, was subscribed a comparatively modest 2.80 times yet still surprised the market with an 11% listing pop, considerably ahead of its grey-market indication. Priority Jewels and Deepa Jewellers, still working through their listing timelines as this report goes to press, point to continued — if more measured — appetite for the sector.

Summary Table: Key Jewellery IPOs (Last Six Months)

CompanyIssue SizePrice Band (₹)Subscription WindowListing DateListing GainSubscription (x)
Lalithaa Jewellery Mart₹1,700 Cr190–20117–19 Aug 202624 Aug 2026+31.99% (BSE)62.97x
Shankesh Jewellers₹367.18 Cr88–9318–20 Aug 202625 Aug 2026+11.08% (NSE)2.80x
Augmont Enterprises₹825 Cr750–78821–25 Aug 202631 Aug 2026+21.95% (NSE)105.8x–111.2x
Priority Jewels₹91.50 Cr190–20028 Aug–1 Sep 20264 Sep 2026 (tent.)GMP-implied ~12%100.45x
Deepa Jewellers₹459.72 Cr168–1771–3 Sep 20268 Sep 2026 (tent.)PendingPending

Other Jewellery IPOs in the Pipeline

Nityas Gems and Jewellery Ltd

  • Status: Received SEBI’s observation letter on July 23, 2026, clearing the way to launch within twelve months
  • Profile: Surat-based manufacturer of lab-grown diamond-studded gold jewellery, operating a dual B2B/D2C model with clients including GIVA, Palmonas, ONYA and Ladia Diamonds, and a direct-to-consumer arm via subsidiary Ayaani Diamonds and Jewellery
  • Issue structure: An entirely fresh issue of roughly 1.44 crore equity shares, with proceeds earmarked mainly for working capital

Additional Names to Watch

Beyond the issues profiled above, several other jewellery-sector companies have filed draft papers or are working through confidential pre-filing with SEBI, including Master Chains N Jewels (which has filed a DRHP for a Rs 400 crore fresh issue) and other manufacturers and retailers reported to be preparing mainboard filings. Exact price bands and launch windows for this second tier remain unconfirmed as of early September 2026, and readers should treat any figures circulating for these names as provisional until formal RHPs are filed.

7. Market Context & Trends

Investor Appetite Has Been Uneven, Not Uniform

The headline story is strong demand, but the pattern beneath it is more nuanced. Lalithaa (62.97x) and Augmont (105–111x) drew genuinely broad-based institutional conviction, while Priority Jewels’ 100.45x subscription was driven disproportionately by retail and non-institutional bidders. Shankesh Jewellers is the outlier: a modest 2.80x overall subscription nonetheless produced an 11% listing pop — a reminder that grey-market chatter and formal subscription data do not always predict listing-day outcomes.

Listing Gains Have Broadly Rewarded Investors

Every jewellery IPO that has listed in this window has done so at a premium to its issue price: Lalithaa at roughly 32%, Augmont at roughly 22%, and Shankesh at roughly 11%. Grey-market premiums, however, have proven an imperfect guide — both Lalithaa and Augmont listed below their GMP-implied levels, while Shankesh listed well above its GMP indication, underscoring that GMP should be read as a sentiment gauge rather than a price forecast.

Capital Is Flowing Toward Debt and Working Capital, Not Diversification

Across every issuer in this cohort, the stated use of proceeds skews heavily toward debt repayment, inventory financing and store or facility expansion — a pattern that reflects how working-capital-intensive organised jewellery retail and B2B manufacturing remain, even for well-established, profitable brands.

With Priority Jewels and Deepa Jewellers still to list, and Nityas Gems and Jewellery — along with a second tier of smaller manufacturers — working through SEBI’s approval process, the jewellery sector’s primary-market pipeline shows little sign of thinning heading into the second half of FY27. For issuers, the lesson of this cycle is that strong brand recognition and headline revenue growth alone have not guaranteed outsized institutional demand; balance-sheet quality, cash-flow discipline and a credible use-of-proceeds story appear to matter just as much to the eventual listing outcome. For investors, the spread of results — from Lalithaa’s blockbuster debut to Shankesh’s under-subscribed-yet-strong listing — argues for evaluating each issuer on its own financial and operational merits rather than treating “jewellery IPO” as a single, uniform trade.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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