Two IPO Debuts, Two Outcomes: Nityas Gems Lists at Up to 9% Premium While Vishal Nirmiti Slips Below Issue Price

Two small mainboard issues that ran on the same bidding dates made their stock market debuts on Thursday, October 8, and they ended up on opposite sides of their issue prices. Nityas Gems and Jewellery opened at a premium, while Vishal Nirmiti opened at a discount. Both listed on a morning when the broader market was already under pressure.

Nityas Gems: a modest but welcome premium

Nityas Gems and Jewellery opened at Rs 82 on the BSE, 9.33% above its issue price of Rs 75. On the NSE, it opened at Rs 80, a 6.67% gain. The Rs 108.35-crore issue was a pure fresh issue of about 1.45 crore shares, with no offer-for-sale component, so all of the money goes to the company and none to exiting shareholders.

Demand during bidding, which ran from September 30 to October 5, was moderate rather than spectacular. The issue was subscribed about 2.25 times overall. Retail investors were the most enthusiastic, bidding for roughly four times their quota, while the qualified institutional portion was only just covered at about 1.06 times.

The company designs, makes and sells gold jewellery set with lab-grown diamonds. Most of its sales are business-to-business, supplying retailers, wholesalers and distributors, while a subsidiary, Ayaani Diamonds and Jewellery, sells directly to consumers. As of the end of August, it had 192 full-time employees, including 122 in-house karigars (artisans) and 29 designers.

Lab-grown diamonds are one of the faster-growing parts of India's jewellery market because they cost much less than mined stones. The premium suggests investors are willing to back a smaller player in that niche, especially heading into the festive and wedding season. Jewellery stocks have also had a positive week, with listed peers reporting strong quarterly business updates.

Vishal Nirmiti: muted demand, muted debut

Vishal Nirmiti had a weaker start. Its shares opened at Rs 215 on both the NSE and BSE, about 2.3% below the issue price of Rs 220, which was the top of its Rs 208 to Rs 220 price band.

The listing matched the bidding period. The Rs 178-crore issue, made up of a fresh issue of about Rs 145 crore and an offer for sale of about Rs 33 crore, drew only around 1.7 times subscription overall, with no investor category showing strong demand. Grey market indicators had pointed to a flat debut in the days before listing.

Vishal Nirmiti works in civil engineering, construction and manufacturing. Its main product is pre-stressed concrete sleepers for railway tracks, and it also makes other precast concrete products. Railway spending has been a strong theme in Indian markets, but many listed companies in that space have already rallied a lot, and investors appear to have been cautious about paying the full price for a smaller supplier.

The market backdrop

Both stocks listed into a risk-off session. The Sensex was down about 370 points around 10 am, a day after the Reserve Bank of India raised its repo rate by 25 basis points to 5.50%. Brent crude was also above $102 a barrel. In conditions like these, small IPOs with average subscription numbers rarely get much help from the wider market.

What it means for IPO investors

Thursday's two listings follow a familiar pattern: strong retail interest can support a small premium, but weak institutional demand often leads to a flat or negative start. Investors who received allotments in either issue will be watching closely to see whether the opening prices hold through the session.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.