DiamondBuzz
Wealthy Russians Surge in Investment-Grade Diamond Purchases Amid Market Uncertainty
Demand for polished diamonds up by 60% as individuals diversify portfolios with gemstones following VAT abolition and growing financial volatility.
Wealthy Russians are increasingly turning to investment-grade diamonds, with purchases of polished stones rising by 60% last year, according to VTB, the country’s second-largest bank. This surge in demand is attributed to the government’s decision to abolish VAT on diamond purchases, which has made gemstones a more attractive investment option.
Oksana Semenenko, vice president at VTB and head of its private banking division, explained that the rarity and uniqueness of diamonds make them especially appealing during times of rising financial market instability and tighter investment restrictions. Many affluent clients are now incorporating alternative investments, including diamonds, into their portfolios, typically allocating 5-10% of their assets to these tangible assets for diversification.
This shift comes amid increasing sanctions from the G7 and restrictions on Russian currency, which have impacted Russian diamond exports. In response, Alrosa, the state-run diamond mining giant, is turning to alternative markets to sell its goods. The company’s Diamond Exclusive program focuses on polishing its largest and highest-quality diamonds, particularly stones of 3 carats or more, to be sold directly to investors through partnerships with VTB and other financial institutions.
DiamondBuzz
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
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)
| Company | Issue Size | Price Band (₹) | Subscription Window | Listing Date | Listing Gain | Subscription (x) |
| Lalithaa Jewellery Mart | ₹1,700 Cr | 190–201 | 17–19 Aug 2026 | 24 Aug 2026 | +31.99% (BSE) | 62.97x |
| Shankesh Jewellers | ₹367.18 Cr | 88–93 | 18–20 Aug 2026 | 25 Aug 2026 | +11.08% (NSE) | 2.80x |
| Augmont Enterprises | ₹825 Cr | 750–788 | 21–25 Aug 2026 | 31 Aug 2026 | +21.95% (NSE) | 105.8x–111.2x |
| Priority Jewels | ₹91.50 Cr | 190–200 | 28 Aug–1 Sep 2026 | 4 Sep 2026 (tent.) | GMP-implied ~12% | 100.45x |
| Deepa Jewellers | ₹459.72 Cr | 168–177 | 1–3 Sep 2026 | 8 Sep 2026 (tent.) | Pending | Pending |
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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