Lalithaa Jewellery Mart launches its ₹1,700 crore IPO, targeting expansion in South India’s smaller cities, with significant institutional interest and a strategy to tap into the rising demand for gold and diamond jewellery.
Lalithaa Jewellery Mart has opened its ₹1,700 crore initial public offering, setting a price band of ₹190 to ₹201 a share as the South India-focused retailer looks to expand its store network and strengthen its balance sheet. The issue closes on Wednesday and consists of a fresh issue of up to ₹1,200 crore, alongside an offer for sale of up to ₹500 crore by promoter M Kiran Kumar Jain.
Investors may apply for a minimum of 74 shares and then in multiples of 74. The book-built issue has been structured with up to half the net offer reserved for qualified institutional buyers, at least 15% for non-institutional investors and at least 35% for retail buyers. The company has already raised ₹508.20 crore from anchor investors, with allocations made at the top end of the price band to funds and institutions including Goldman Sachs and Morgan Stanley.
Founded in 1985, Lalithaa sells gold, silver and diamond jewellery through a network of 61 stores across 51 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry. The business has built a particularly strong presence in tier II and tier III cities, which the company says account for a large share of revenue. Prime Database’s IPO diary noted that its asset-light approach, with most outlets leased rather than owned, and its in-house manufacturing have helped it keep pricing competitive and drive growth.
The company plans to use ₹1,014.50 crore from the fresh issue for capital expenditure, including new stores in India, with the remainder going towards general corporate purposes. According to the prospectus and market commentary, the retailer has grown quickly in recent years, but brokers have flagged that some of the recent margin strength may reflect a sharp rise in gold prices. Anand Rathi Advisors and Equirus Capital are the book-running lead managers, while MUFG Intime India is the registrar.
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