Yaashvi Jewellers IPO

The company primarily deals in gold jewellery across multiple purity categories including 9K, 14K, 18K, 20K and 22K products. Along with gold chains, the portfolio also includes studded jewellery, silver jewellery, diamond jewellery, bullion trading, and customized jewellery offerings.

Yaashvi operates from Jaipur, one of India’s well-known jewellery manufacturing hubs. The company has a manufacturing unit in the RIICO Industrial Area and also runs retail operations in Jaipur city.

Registered Office

Plot No. 486, Nemi Sagar Colony, Vaishali Nagar, Jaipur, Rajasthan – 302021.

Manufacturing Facility

RIICO Area, Road No. 2, Plot No. F-19, Jaipur, Rajasthan – 302022.

Retail Presence

• Gopal Ji Ka Rasta, Jaipur

• Jagatpura, Jaipur

IPO Details Snapshot

The IPO proceeds are expected to support expansion plans, working capital requirements, and overall business growth.

India is one of the world’s largest gold consumers, and jewellery remains deeply connected with cultural, social, and investment behaviour across the country. Gold jewellery demand is driven not only by weddings and festivals but also by increasing urban consumption, rising disposable income, and growing preference for branded jewellery.

The Indian gems and jewellery industry contributes significantly to exports, employment, and MSME manufacturing activity. Jaipur, where Yaashvi operates, has emerged as an important jewellery manufacturing cluster with a strong artisan ecosystem.

Key Industry Growth Drivers

Rising Organised Market Share

Consumers are increasingly shifting from unorganised local jewellers to branded and compliant jewellery businesses. Hallmarking norms, GST implementation, and rising quality awareness are helping organised players gain market share.

Demand for Lightweight Jewellery

Machine-made chains and lightweight jewellery are becoming highly popular among younger consumers due to affordability and contemporary designs. This directly benefits companies like Yaashvi that specialise in machine-made chains.

Growth in Wedding Jewellery Market

India’s wedding economy continues to drive gold consumption. Bridal jewellery remains one of the strongest demand segments in the country.

Export Opportunities

Government support through export promotion councils and simplified trade policies is improving opportunities for Indian jewellery exporters.

Hallmarking and Compliance Push

Mandatory BIS hallmarking is improving transparency and consumer trust in the jewellery market.

Government Initiatives Supporting the Industry

The Indian government has introduced several initiatives to formalise and strengthen the jewellery ecosystem:

• BIS Hallmarking System

• India International Bullion Exchange (IIBX)

• Sovereign Gold Bond Scheme

• Digital gold ecosystem development

• MSME support schemes

• Jewellery export incentives

The industry outlook discussed in the document also highlights increasing adoption of technology, formalisation, and regulatory streamlining as long-term growth drivers.

Industry Risks

The jewellery sector also faces several challenges:

• Volatility in gold prices

• Import duty fluctuations

• Working capital intensity

• Inventory management pressure

• High competition from organised brands

• Regulatory compliance burden

• Consumer demand sensitivity during economic slowdowns

Despite these risks, organised jewellery manufacturing businesses with scalable operations and strong supplier networks are expected to benefit over the long term.

Yaashvi Jewellers operates across jewellery manufacturing, wholesale distribution, and retail trading. The company’s core strength lies in machine-made gold chains, which form a major portion of its product portfolio.

Product Portfolio

The company deals in:

• Machine-made gold chains

• Plain gold jewellery

• Studded jewellery

• Diamond jewellery

• Fashion silver jewellery

• Gold bullion trading

• Customized jewellery

The jewellery is manufactured across different purity levels including:

• 9 Karat

• 14 Karat

• 18 Karat

• 20 Karat

• 22 Karat

Manufacturing Operations

The company converts gold bullion and raw materials into finished jewellery products. Manufacturing operations are carried out at the Jaipur facility located in RIICO Industrial Area.

Machine-made chains remain the company’s key focus area because they offer:

• Better scalability

• Uniform quality

• Higher production efficiency

• Lower labour dependency

• Faster execution capability

This segment also caters to wholesalers and retailers looking for affordable and standardised jewellery products.

Revenue Model

Yaashvi generates revenue through:

1. Wholesale jewellery supply

2. Retail jewellery sales

3. Bullion trading

4. Custom jewellery orders

The business caters to:

• Dealers

• Jewellery showrooms

• Retail jewellery shops

• End consumers

Retail Expansion

The company has strengthened its retail footprint in Jaipur through showroom operations and leased retail spaces. One of the larger showroom properties is located at Jagatpura, Jaipur, with a long-term lease agreement extending till 2030.

Operational Strengths

Strong Manufacturing Base

The company operates from Jaipur, which provides access to skilled artisans, jewellery supply chains, and established bullion networks.

Product Diversification

The portfolio includes both traditional and contemporary jewellery categories.

Focus on Affordability

Machine-made jewellery allows Yaashvi to cater to price-sensitive retail buyers.

Wholesale Distribution Network

The company supplies jewellery products to multiple dealers and jewellery shops.

Hallmarked Jewellery

Yaashvi holds BIS hallmark licences for jewellery operations, improving customer trust and regulatory compliance.

The jewellery business in India is highly regulated due to its connection with precious metals, taxation, imports, exports, and consumer protection.

Yaashvi Jewellers has obtained multiple registrations and approvals necessary for operating its manufacturing and jewellery trading business.

Important Licences and Registrations

BIS Hallmark Compliance

The company holds hallmark registrations under BIS standards for jewellery certification. Hallmarking has become a major trust factor in India’s organised jewellery market.

Environmental Compliance

The manufacturing facility has obtained consent to operate under pollution control regulations, valid up to February 2035.

Labour Law Compliance

The company is registered under:

• Employee State Insurance (ESI)

• Employees’ Provident Fund (EPF)

• Rajasthan Shops and Commercial Establishments Act

Intellectual Property

Yaashvi has trademark registrations and applications associated with:

• YAASHVI JEWELLERS

• YASHASVI

• PURESOUL

The company also owns the domain:

yaashvijewellers.com

Every SME IPO carries operational, financial, and industry-related risks. Investors should evaluate Yaashvi Jewellers from both growth and risk perspectives.

Gold Price Volatility

The jewellery business is heavily dependent on gold prices. Sharp increases in bullion prices can affect:

• Customer demand

• Inventory valuation

• Working capital requirements

• Profit margins

Working Capital Intensive Business

Jewellery manufacturing requires significant investment in inventory and receivables. The company maintains large inventory holdings to support business operations.

As of March 2025, inventories stood at over ₹4,383 lakh.

SME Business Risks

The company operates in the SME segment where:

• Competitive intensity is high

• Brand recall may be limited

• Scale advantages are lower compared to larger jewellery chains

Regulatory Risks

The jewellery industry is subject to:

• GST regulations

• Hallmarking norms

• Import duty changes

• Precious metal sourcing regulations

• Anti-money laundering compliance

Dependence on Consumer Sentiment

Jewellery demand can slow during:

• Economic uncertainty

• Inflationary periods

• Weak wedding seasons

• Lower discretionary spending cycles

Inventory and Theft Risks

Jewellery businesses inherently face risks related to:

• Inventory security

• Pilferage

• Physical damage

• Storage management

Geographic Concentration

A large part of the company’s operations currently remains concentrated in Jaipur, Rajasthan.

The company is promoted by:

• Ankita Agarwal

• Ankit Aggarwal

Both promoters have been associated with the business since incorporation. They were also the initial subscribers to the Memorandum of Association.

Promoter Background

The promoter family has experience in jewellery trading and related activities. Their industry understanding has helped the company build manufacturing and retail operations within Jaipur’s jewellery ecosystem.

Promoter Group Entities

The promoter group includes:

1. D.A. Jewellers

2. Ankit Gems

3. Dinesh Kumar Agarwal and Sons HUF

Family Relationships in Promoter Group

The promoter group includes family members connected through direct relationships including parents, spouse, children, and related proprietary businesses.

Past Disassociation

Ankit Aggarwal ceased directorship in Ganapati Jewellers Crafts Private Limited in July 2023.

The company has disclosed promoter group entities connected through proprietary firms and HUF structures.

These entities are primarily associated with jewellery trading and related activities.

Key Group Businesses

The existence of jewellery-related promoter group entities is common in family-driven jewellery businesses where multiple retail and trading entities operate independently.

At present, the company appears focused on expanding the Yaashvi brand within organised jewellery manufacturing and retailing.

The company is led by experienced promoters and a management team responsible for manufacturing, finance, compliance, and operations.

Key Management Personnel

Management Strengths

Entrepreneurial Leadership

The promoters are actively involved in the business and operational decision-making.

Industry Understanding

Management experience in jewellery manufacturing and trading supports sourcing, product development, and dealer relationships.

Financial Oversight

The company has established formal compliance and finance functions ahead of listing.

Ahead of the SME listing, Yaashvi Jewellers has strengthened its governance framework.

Board Committees

The company has constituted:

• Audit Committee

• Nomination & Remuneration Committee

• Stakeholders Relationship Committee

• Corporate Social Responsibility Committee

Governance Improvements

Transitioning into a listed company generally increases:

• Financial disclosure standards

• Compliance monitoring

• Board accountability

• Investor communication requirements

For SME companies, improving governance practices can help build long-term investor confidence.

The document does not highlight any major material litigation capable of severely impacting the company’s operations as of the disclosed period.

However, investors should note that jewellery businesses regularly remain exposed to:

• Tax scrutiny

• Regulatory inspections

• Hallmark compliance checks

• GST assessments

• Commercial disputes

The company has adopted a materiality policy for identifying material litigation and regulatory matters.

The company has also disclosed that there are no major pending licence applications except procedural name update approvals associated with the transition from private limited to public limited status.

Yaashvi Jewellers has obtained several operational approvals necessary for manufacturing, retail, and jewellery trading activities.

Important Operational Approvals

Business Registrations

• PAN

• TAN

• GST Registration

• UDYAM MSME Registration

• Import Export Code

Manufacturing Approvals

• Factory Licence

• Pollution Control Consent

• Fire Safety Approval

Industry Certifications

• BIS Hallmark Licences

• GJEPC Membership

• Legal Metrology Certificate

Export Readiness

The company also holds registration with the Gems and Jewellery Export Promotion Council (GJEPC), supporting future export opportunities.

Yaashvi Jewellers has reported strong revenue growth over the last few financial years, supported by expansion in jewellery manufacturing and trading operations.

The company’s financial performance reflects increasing scale, higher business activity, and improving profitability.

Revenue Growth Trend

*Annualised comparison may not be directly comparable.

The company recorded a significant jump in revenue during FY25, crossing ₹297 crore in turnover. Profitability also improved sharply over the same period.

Profitability Analysis

PAT increased from around ₹69 lakh in FY23 to more than ₹354 lakh in FY25.

This improvement indicates:

• Better operating leverage

• Improved business scale

• Higher sales efficiency

• Improved product mix

• Better inventory movement

The jewellery industry typically operates on relatively thin margins due to gold price sensitivity and intense competition. Therefore, consistent improvement in profitability is an important indicator.

Expense Structure

The company’s largest expense heads include:

• Raw material consumption

• Purchase of stock-in-trade

• Finance cost

• Employee expenses

Gold procurement naturally forms the largest cost component for jewellery businesses.

Business Scalability

The jump in revenue suggests increasing acceptance of the company’s jewellery products across wholesale and retail channels.

Machine-made jewellery operations may also support:

• Faster production cycles

• Standardised output

• Better scalability

• Lower dependence on manual craftsmanship

Jewellery businesses usually require substantial working capital because inventory procurement involves large bullion purchases.

Yaashvi Jewellers also relies on borrowings to support operations.

Debt Position

The company’s debt-equity ratio has fluctuated over recent years.

A debt-equity ratio near 2x indicates meaningful leverage, though this is not unusual in jewellery manufacturing where inventory financing remains common.

Finance Cost Analysis

Finance costs increased as operations expanded.

Rising finance costs indicate:

• Increased working capital utilisation

• Larger inventory procurement

• Expansion in business activity

Working Capital Dependency

The jewellery business typically involves:

• Large inventory holding

• Credit sales to dealers

• High bullion procurement requirements

This makes efficient working capital management extremely important.

Cash flow quality is one of the most important areas investors should monitor in SME IPOs.

Yaashvi’s operating model requires continuous deployment of funds into inventory and receivables.

Cash Balance Movement

The reduction in closing cash balance indicates increased deployment of funds into operations and business expansion.

Financing Activities

The company generated financing inflows through:

• Short-term borrowings

• Share capital infusion

• Security premium proceeds

Inventory and Receivables Impact

A significant portion of operating capital remains tied up in:

• Jewellery inventory

• Trade receivables

As of FY25:

The inventory-heavy balance sheet structure is common in the jewellery industry.

Financial ratios provide deeper insight into operational efficiency and profitability.

Key Ratios Snapshot

Return on Net Worth

A RoNW of over 46% is strong for a manufacturing-oriented SME company.

This indicates efficient utilisation of shareholder capital.

Earnings Per Share

EPS of ₹9.66 reflects meaningful earnings generation relative to the company’s equity base.

Current Ratio Analysis

The current ratio remains above 1x, suggesting the company is capable of meeting near-term obligations.

Fixed Asset Turnover

The business demonstrates strong fixed asset utilisation because jewellery manufacturing often generates high revenue relative to plant investment.

Yaashvi Jewellers appears focused on scaling its jewellery manufacturing and retail business through operational expansion and improved market reach.

Key Business Strategies

Expansion of Manufacturing Capacity

The company is strengthening manufacturing operations to support increasing demand for machine-made jewellery.

Retail Expansion

The leased showroom expansion in Jaipur indicates a growing focus on direct retail visibility.

Focus on Machine-Made Jewellery

Machine-made gold chains form the company’s core business category.

This segment offers:

• Faster production

• Design consistency

• Better scalability

• Affordability for customers

Product Diversification

The company is not limited only to gold chains. It also deals in:

• Diamond jewellery

• Studded jewellery

• Silver jewellery

• Customized jewellery

• Bullion trading

Brand Building

Trademark registrations including PURESOUL and YAASHVI branding indicate efforts toward creating a recognisable jewellery identity.

Industry Positioning

The company currently operates in the SME jewellery space where:

• Regional trust matters significantly

• Customer relationships drive repeat business

• Product pricing competitiveness is critical

Its Jaipur manufacturing base provides access to jewellery artisans and supply chain ecosystems.

The IPO is entirely a fresh issue of equity shares.

This means the funds raised will primarily go into the company rather than existing shareholders selling shares.

Likely Utilisation Areas

Based on the business profile and funding requirements, the proceeds are expected to support:

• Working capital requirements

• Inventory procurement

• Business expansion

• General corporate purposes

• Strengthening operational capabilities

Why Working Capital Matters in Jewellery Business

Jewellery companies require large upfront investment because:

• Gold procurement is expensive

• Inventory cycles are large

• Retail and wholesale operations require stock availability

Additional working capital can help:

• Increase production scale

• Improve dealer supply capacity

• Expand retail inventory

• Support revenue growth

The valuation section compares Yaashvi Jewellers with listed SME jewellery peers.

Peer Comparison

The company demonstrates stronger profitability metrics compared to some SME peers.

Valuation Considerations for Investors

Investors should evaluate:

• Revenue growth sustainability

• Inventory risk

• Debt levels

• Jewellery industry cyclicality

• SME liquidity risks

• Future retail expansion capability

SME IPO Valuation Risk

SME IPOs can witness:

• Sharp price volatility

• Lower liquidity

• Wider bid-ask spreads

• Higher speculative activity

Hence valuation comfort becomes extremely important

The IPO consists of a fresh issue of 51,39,200 equity shares.

The face value of each equity share is ₹10.

Capital Structure Highlights

The issue will dilute promoter holding post listing while also increasing the company’s capital base.

Share Capital Evolution

The company has undertaken prior capital raising activities including a rights issue.

In August 2024, the company allotted:

• 8,91,892 equity shares

• Issue price: ₹18.5 per share

• Total amount raised: ₹1.65 crore

This transaction provides an important reference point for investors evaluating the IPO pricing.

The promoters currently hold controlling ownership in the company.

Post IPO, promoter shareholding will dilute but the promoter group is expected to continue retaining management control.

Shareholding Characteristics

The business remains promoter-driven with family participation across management and related business entities.

This structure is relatively common in jewellery SMEs where:

• Operational decisions remain promoter-centric

• Procurement relationships are relationship-driven

• Industry trust plays a major role

Investors should monitor future promoter shareholding trends after listing.

The company has disclosed a dividend policy as part of the IPO process.

However, growing SMEs often prioritise:

• Business expansion

• Inventory funding

• Working capital support

• Retail growth

instead of large dividend payouts during early growth phases.

Factors Affecting Future Dividends

Future dividend decisions may depend on:

• Profitability

• Cash flows

• Expansion requirements

• Debt obligations

• Working capital intensity

Since jewellery businesses are capital-intensive, earnings retention may remain important during growth stages.

Related party transactions are common in promoter-driven SME businesses, especially in industries like jewellery where family-operated entities often participate in sourcing, retailing, or operational support.

Yaashvi Jewellers has disclosed transactions and relationships involving promoter group entities and related individuals.

Promoter-Linked Lease Arrangements

The company operates from certain leased premises connected to promoter group members.

Registered Office Property

The registered office property at Vaishali Nagar, Jaipur, has been taken on usage terms from promoter Ankit Aggarwal.

Retail Shop Lease

One retail property has been leased from promoter group member Dinesh Agarwal.

These arrangements are not unusual for SME businesses, especially family-run enterprises during early growth stages.

Investor Perspective on Related Party Transactions

Investors should generally monitor:

• Whether transactions are conducted at arm’s length

• Dependency on promoter-owned assets

• Future scalability without promoter-linked support

• Governance standards after listing

As the business transitions into a listed entity, disclosure standards and scrutiny around related party transactions are expected to increase.

The company has entered into several material agreements connected with the IPO and operational framework.

IPO-Related Agreements

Issue Agreement

Executed between the company and the lead manager for managing the public issue process.

Registrar Agreement

Signed with Bigshare Services Private Limited for handling investor records and allotment processes.

Market Making Agreement

Required under SME listing norms to support post-listing liquidity.

Underwriting Agreement

Executed in connection with underwriting responsibilities for the IPO.

Depository Agreements

The company has entered into tripartite agreements with:

• NSDL

• CDSL

for dematerialisation of shares.

Importance for Investors

These agreements ensure:

• Proper issue management

• Share dematerialisation

• Investor servicing

• Market making support

• Listing compliance

Such agreements are standard but essential for smooth functioning of listed SME companies.

Yaashvi Jewellers is launching its IPO on the BSE SME platform through a fixed price issue.

Issue Structure Snapshot

The IPO is entirely a fresh issue, meaning the company itself will receive the proceeds.

Investor Reservation Structure

As per SME IPO regulations:

• Minimum 50% allocation reserved for retail individual investors

• Remaining portion allocated to non-retail investors

• Market maker reservation applicable separately

SME IPO Characteristics

Compared with mainboard IPOs, SME IPOs usually have:

• Lower issue sizes

• Lower public float

• Higher listing volatility

• Lower liquidity

• Higher speculative participation

Investors should consider these factors before investing.

Post listing, equity shareholders will receive rights available under applicable corporate and securities laws.

Major Shareholder Rights

Voting Rights

Shareholders can vote on key corporate matters.

Dividend Rights

Eligible shareholders may receive dividends if declared by the company.

Bonus and Rights Entitlements

Investors may participate in future corporate actions.

Access to Financial Information

Listed companies are required to publish:

• Financial results

• Corporate announcements

• Governance disclosures

• Shareholding updates

Right to Transfer Shares

Investors can buy and sell shares through the stock exchange after listing.

The company has disclosed several operational and statutory matters relevant for investors.

Intellectual Property Portfolio

The company has trademark registrations and applications related to:

• YAASHVI JEWELLERS

• YASHASVI

• PURESOUL

This indicates ongoing brand-building efforts.

Domain Ownership

The company owns:

• yaashvijewellers.com

which supports digital branding and online visibility.

MSME Registration

The company holds UDYAM registration, enabling access to MSME-related benefits and support systems.

Export Registration

Yaashvi is registered with the Gems and Jewellery Export Promotion Council (GJEPC), which may support future export business expansion.

Pollution and Factory Compliance

The manufacturing unit holds:

• Factory licence

• Pollution control consent

• Fire safety certification

These approvals support operational continuity.

Yaashvi Jewellers operates in a large and culturally significant industry with strong long-term demand drivers.

Positive Factors

Strong Revenue Growth

The company has demonstrated rapid business expansion over recent years.

Improving Profitability

PAT growth and return ratios have improved meaningfully.

Organised Jewellery Opportunity

India’s jewellery market continues shifting toward compliant and organised businesses.

Manufacturing Specialisation

Machine-made jewellery offers scalability and operational efficiency.

Jaipur Ecosystem Advantage

The company benefits from operating within a major jewellery manufacturing hub.

Areas Investors Should Monitor

Working Capital Intensity

Large inventory requirements can pressure liquidity.

Debt Levels

The business remains dependent on borrowings for operational funding.

SME Liquidity Risk

Post-listing liquidity may remain limited compared to mainboard stocks.

Gold Price Volatility

Sudden bullion price changes can impact margins and demand.

Competitive Market

The jewellery industry remains highly fragmented and competitive.