Chennai: Lalithaa Jewellery Mart Pvt. Ltd., a prominent southern India-based jewellery retail chain, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), marking its intention to raise ₹1,700 crore through an initial public offering (IPO).
The proposed IPO comprises a fresh issue of equity shares worth ₹1,200 crore and an offer for sale (OFS) of ₹500 crore by promoter Kiran Kumar Jain, according to the DRHP submitted to the market regulator.
Proceeds from the fresh issue will primarily be used to expand the company’s retail footprint, with ₹1,014.5 crore earmarked for the establishment of 12 new stores across India. The remaining capital will be utilized for general corporate purposes.
Currently, Lalithaa Jewellery operates 56 outlets across 46 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and the Union Territory of Puducherry. Notably, 73% of its stores are located in Tier II and Tier III cities, reinforcing its strong regional presence.
Citing a CRISIL report included in the DRHP, the company is recognized as the second-fastest-growing regional jewellery brand in India, based on operating revenue growth between FY22 and FY24. It posted a compound annual growth rate (CAGR) of 43.62% in operating revenue over the same period.
Lalithaa Jewellery’s operating revenue surged from ₹8,139.42 crore in FY22 to ₹16,788 crore in FY24. For the nine months ended December 31, 2024, it reported operating revenue of ₹224.90 crore.
The company’s manufacturing operations are housed in two facilities located in Thirumudivakkam, Chennai, and Maraimalai in Kanchipuram. These units, operated through its wholly owned subsidiary Asita Manufacturing Pvt. Ltd., span approximately 43,682 sq. ft and 20,000 sq. ft, respectively. The Thirumudivakkam facility commenced operations on December 2, 2024.
India’s gold jewellery retail sector was valued at ₹5,45,100 crore in FY24, with demand totaling 774 tonnes of gold. The industry experienced an 18% year-on-year growth in FY24, driven by both volume and price escalation. However, future gold prices are expected to remain volatile due to geopolitical developments and macroeconomic conditions.
Anand Rathi Advisors and Equirus Capital have been appointed as the book-running lead managers for the IPO.
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