Mumbai: Lalithaa Jewelery Mart, a well-known gold jewellery chain from Tamil Nadu, has taken its first step to list on the stock exchange. The company filed draft papers with SEBI on June 6 to raise Rs 1,700 crore through an Initial Public Offering (IPO).
The IPO will include two parts. One, a fresh issue of Rs 1,200 crore worth of equity shares. Two, an offer-for-sale (OFS) of Rs 500 crore shares by promoter Kiran Kumar Jain. This means the company will get Rs 1,200 crore, and the promoter will sell part of his stake worth Rs 500 crore.
Lalithaa Jewelery wants to use around Rs 1,014.5 crore from the fresh issue to open 12 new stores across India. The remaining money will be used for general corporate expenses.
The company sells gold jewellery through 56 stores spread across 46 cities. These are mainly in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Puducherry. Lalithaa competes with other listed jewellers like Titan, Kalyan Jewellers, Senco Gold, PC Jeweller, and others.
Lalithaa was founded in 1985 and has grown rapidly in recent years. Between FY22 and FY24, the company's revenue from operations rose at a strong compound annual growth rate (CAGR) of 43.62%, reaching Rs 16,788 crore.
In the year ended March 2024, the company posted a net profit of Rs 359.8 crore. This was 51% more than the previous year. Revenue for the year grew by 26 percent to Rs 16,788 crore.
During the nine months ended December 2024, Lalithaa had already made Rs 12,594.7 crore in revenue and Rs 262.3 crore in profit.
Anand Rathi Advisors and Equirus Capital are the book-running lead managers for this IPO. They will help the company manage and market the IPO process.
With this move, Lalithaa aims to expand its footprint and strengthen its position in India’s growing jewellery market.
(With agency inputs)
