Surat-based lab-grown diamond manufacturer Anjali LabTech Ltd has re-submitted its draft red herring prospectus with the Securities and Exchange Board of India to raise Rs 1,225 crore through an initial public offering. The public issue encompasses a fresh share issuance valued at Rs 925 crore alongside an offer for sale worth Rs 300 crore executed by existing promoter shareholders.
The updated regulatory filing follows market regulator Sebi giving its initial go-ahead to the company in February after reviewing draft papers submitted via the confidential filing route. According to the revised documentation, the company may explore raising up to Rs 185 crore through a pre-IPO placement round prior to launching the public share sale, which would correspondingly reduce the size of the fresh issue.
Structure of Promoter Offering and Share Allocation
The Rs 300 crore offer for sale component features divestments by specific promoter-group participants. Shilpaben Rajanibhai Radadiya has slated shares worth up to Rs 106.25 crore for sale, while Nehaben Sandipkumar Radadiya and Madhubhai Samujbhai Radadiya are offering portions valued at up to Rs 75 crore and Rs 118.75 crore respectively. All equity shares carry a face value of Rs 5 each.
To manage the public issue, the company has appointed IIFL Capital Services Ltd and Axis Capital Ltd as the book-running lead managers. The capital raised through the fresh share issuance is designated to address multiple corporate expansion objectives and financial obligations.
Deployment of Proceeds and Operational Expansion
A primary share of the net proceeds from the fresh issue will fund capital expenditure required for manufacturing operations and the captive installation of microwave plasma chemical vapour deposition machines. This specialized technology is deployed to facilitate the in-house cultivation of rough lab-grown diamonds across the company's production infrastructure.
Additional proceeds will finance the construction and development of Anjali Corporate House located at Moje Kosmada in Surat, Gujarat. Funds will also be allocated toward prepaying or repaying outstanding company borrowings, leaving the remaining balance for general corporate purposes.
Vertically Integrated Operations and Export Exposure
Incorporated in 2021, Anjali LabTech operates as a vertically integrated entity across the entire value chain of the lab-grown diamond sector. Its manufacturing activities are anchored by seven facilities situated in Surat, a dominant industrial center that accounts for over ninety percent of India's aggregate lab-grown diamond output.
The G7 nations instituted a direct ban on Russian diamonds alongside measures restricting indirect imports. In response, the Gem and Jewellery Export Promotion Council engaged the Indian government regarding potential adverse consequences for domestic employment.
The company reported robust financial growth prior to the filing, with profit after tax advancing to Rs 200.92 crore for fiscal 2026, compared to Rs 146.79 crore in fiscal 2025 and Rs 90.06 crore in fiscal 2024. However, management cautioned that historical operating results do not guarantee future performance.
Disclosed Business Risks and Market Vulnerabilities
Within its risk disclosures, the company noted that equipment sales represent a substantial revenue component, with microwave plasma chemical vapour deposition machines accounting for 31.84 percent of operating revenue in fiscal 2026, shifting from 29.31 percent in fiscal 2025 and 53.74 percent in fiscal 2024. Demand contractions in this equipment segment could impact cash flows.
customer concentration remains notable, as the top ten clients generated 59.37 percent of revenue in fiscal 2026. Management also highlighted potential export vulnerabilities, pointing to prospective United States tariffs and trade measures targeting diamond products sourced from India, alongside a lack of directly comparable listed industry peers.
Next steps for the public offering depend on market conditions and the potential execution of the pre-IPO placement round ahead of final share-price band announcements.
