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Mumbai-based precious metals company Augmont Enterprises’ ₹825 crore initial public offering (IPO) will open for subscription on Friday, August 21, and close on August 25.
Ahead of the IPO opening, the company has raised ₹246 crore through its anchor book.
Augmont Enterprises allocated 31.25 lakh shares to 15 institutional investors at ₹788 per share through the anchor book. The investors include Nomura and Societe Generale.
Of the total anchor allocation, 13.83 lakh shares were allotted to four domestic mutual funds - HDFC Asset Management Company, Nippon Life India Asset Management, Tata AMC and Trust Mutual Fund - across five schemes.
Edelweiss Life Insurance Company also picked up 1.26 lakh shares worth ₹10 crore through the anchor book.
Other investors that participated in the anchor book include Ashish Kacholia-backed Bengal Finance and Investment, Girik Capital's Girik Multicap Growth Equity Fund, 360 ONE WAM-managed Turnaround Opportunities Fund, Authum Investment and Infrastructure, Jupiter Fund Management and Lion Global Investors.
Augmont Enterprises IPO: Should you apply or avoid?
SMIFS: Subscribe
SMIFS has recommended subscribing to the Augmont Enterprises IPO for the long term, citing the company's integrated business model, strong financial performance and growth opportunities.
The Indian bullion trading market is expected to grow from ₹4.3 lakh crore in FY26 to ₹8.8 lakh crore by FY30, driven by rising investment demand for precious metals, increasing digital gold adoption and the growing formalisation of the industry, according to SMIFS.
The brokerage believes Augmont is well positioned to benefit from this opportunity, given its presence across procurement, refining, bullion trading, digital gold, jewellery exports and gold-backed financial services.
The company has a diversified sourcing network, 284 MTPA refining capacity, authorisation to deliver bullion on the BSE and MCX, and a large distribution ecosystem comprising 20 delivery centres, 218+ partners, 3,700+ Muthoot branches and 49.6 million registered consumers.
Its technology-led platforms, Augmont SPOT and Gold For All, offer real-time price discovery and customer engagement, while supporting scalability, the brokerage said.
SMIFS expects future growth to be driven by expansion into Tier 2, Tier 3 and Tier 4 markets, the addition of 15 new delivery centres by FY29, expansion of refining and export operations, increased consumer penetration and its recently launched lab-grown diamond trading platform.
Given these growth drivers, the brokerage has recommended subscribing to the issue as a long-term investment opportunity.
Augmont Enterprises IPO: Key details on price, GMP
Augmont Enterprises is looking to raise up to ₹825 crore at the upper end of its price band of ₹750-788 per share.
The latest grey market premium (GMP) stands at ₹285 per share, according to websites that track such trades.
At the upper end of the price band, this indicates an implied premium of around 36% over the issue price. However, investors should note that GMP is an unofficial indicator of market sentiment in the unlisted market and can change rapidly. It does not guarantee the listing price or future performance of the stock.
The issue comprises a fresh issue of shares worth ₹620 crore and an offer for sale (OFS) of up to ₹205 crore by the promoter Kothari family.
The OFS will be undertaken by promoters Namita Ketan Kothari, Vivek Prithviraj Kothari and Dimple Mukesh Kothari.
Augmont plans to use ₹465 crore from the net fresh issue proceeds to fund future working capital requirements, including procurement, maintenance and scaling up of inventory, as well as advance margin requirements for inventory procurement.
The remaining proceeds will be used for general corporate purposes.
The company requires significant working capital as its bullion business is driven by transaction volumes, scale and the pace of transactions, rather than individual unit economics.
Augmont Enterprises business model
Augmont operates through two key business verticals — enterprise sales through its Augmont SPOT platform and international sales, and consumer-focused offerings through the Augmont Gold For All platform and offline channels.
The company manufactures products at its Sitapur SEZ unit in Jaipur, Rajasthan, which has a capacity of 13.80 MTPA, and sells them in international markets.
It also operates two gold and silver refining units in Rudrapur, Uttarakhand, and Mumbai, Maharashtra.
On the financial front, Augmont Enterprises reported a profit of ₹348.3 crore in FY26, up 53.3% from ₹227.2 crore in the previous fiscal. Revenue rose 42.2% to ₹94,186.2 crore in FY26 from ₹66,230.8 crore in FY25.
Nuvama Wealth Management, Intensive Fiscal Services, JM Financial and Motilal Oswal Investment Advisors are acting as merchant bankers for the IPO.
The IPO allotment is expected by August 27, while the shares are likely to list on the BSE and NSE on August 31.
