Chennai-based Lalithaa Jewellery Mart Private Limited has filed its Draft Red Herring Prospectus with capital markets regulator Sebi to raise capital via the initial public offering (IPO) route. The jewellery retail brand operating in southern India is looking to raise ₹1,700 crore by public listing of its shares on the domestic bourses.

The Lalithaa Jewellery IPO is a combination of a fresh issue of ₹1,200 crore and an offer for sale (OFS) of ₹500 crore worth of shares by its promoter Kiran Kumar Jain, according to the DRHP filed with the regulator.

Out of fresh equity capital, the company intends to use up to ₹1,014.5 crore for setting up of 12 new stores in India, and use the remainder to meet general corporate purposes.

The company runs 56 stores in 46 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and the Union Territory of Puducherry, with a majority of the stores (73%: 41 of the total 56 outlets) operational in Tier II and III cities. Amongst the key organised jewellery players considered in India, Lalithaa Jewellery Mart Limited is the second fastest growing regional jewellery player on the basis operating revenue growth between FY22 and FY24. Lalithaa Jewellery Mart Limited reported operating revenue CAGR of 43.62% between FY22 to FY24, as per a CRISIL report mentioned in the DRHP.

The revenue from operations of the company has grown from ₹8,139.42 crore in FY22 to ₹16,788 crore in FY24. For the nine-month period ended December 31, 2024, the operating revenue stood at ₹224.90 crore.

The company operates two manufacturing facilities located in Thirumudivakkam, Chennai and Maraimalai, Kanchipuram (operated through its wholly owned subsidiary, Asita Manufacturing Private Limited), having an area of approximately 43,681.96 sq. ft and 20,000.00 sq. ft, respectively. It commenced operations of its manufacturing facility at Thirumudivakkam, Chennai from December 2, 2024. 

The Indian gold jewellery retail industry was valued at ₹5,45,100 crore in FY24 with a demand of 774 tonne gold. The demand in this industry depends on gold prices, with changes in gold prices impacting demand. In FY24, the gold industry saw robust growth on account of both volume and price increase resulting in around 18% increase in gold retail industry. Going ahead gold prices are expected to vary based on geopolitical events and other macroeconomic factors and hence prices are expected to remain volatile in the near future.

Anand Rathi Advisors and Equirus Capital have been appointed as book running lead managers for Lalithaa Jewellery Mart IPO.

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