Chennai-based jewellery player Lalithaa Jewellery files DRHP for Rs 1700 crore IPO
Chennai-based jewellery player
Lalithaa Jewellery Mart
, operating under the brand name Lalithaa, offering a diverse range of gold, silver and diamond jewellery across styles, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 1,700 crore through Initial Public Offering (IPO).
The IPO, with a face value of Rs 5, is mix of a fresh issue of up to Rs 1200 crore and an offer-for-sale up to Rs 500 crore by M. Kiran Kumar Jain. It includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion, as per the filing.
The company, in consultation with the book-running lead managers, may consider a pre-IPO placement. If such placement is completed, the fresh issue size will be reduced. The pre-IPO placement if undertaken shall not exceed 20 per cent of the size of the fresh issue.
The proceeds from the fresh issue to the extent of Rs 1014.50 crore for funding of capital expenditure for setting up new stores in India; and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50 per cent of the net offer is allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer is assigned to non-institutional and retail individual bidders respectively.
Lalithaa Jewellery Mart opened its first store in 1985 in T.Nagar locality of Chennai which is a hub for a silk and jewellery retail outlets, according to a CRISIL report.
It primarily sells gold jewellery and other offerings include silverware and diamond jewellery. It serves the southern Indian market with stores operational in Tier I, II and III cities with authenticated BIS-hallmarked jewellery through its 56 stores, out of which 22 in Andhra Pradesh, 20 are in Tamil Nadu, seven in Karnataka, six in Telangana and one in the Union Territory of Puducherry, spread across a total operational area of 6,09,408 sq. ft., as of December 31, 2024, with 47 stores with an aggregate area of each store more than 5,000 sq. ft.
It had the highest operating revenue per store amongst the key organised jewellery players in India between Fiscals 2022 to 2024 and the nine-month period ended December 31, 2024, according to a CRISIL report mentioned in the DRHP. The company is also the second fastest growing regional jewellery player amongst key organised jewellery players in India basis operating revenue growth between fiscals 2022 to 2024. The company reported operating revenue CAGR of 43.62 per cent between fiscals 2022 and 2024.
The company also offers jewellery schemes such as 'Dhana Vandhanam' and 'Free-yo-Flexi' that attracts customers on a repeated basis. As of December 31, 2024, 420,261 customers are enrolled and are active in its schemes.
It operates two manufacturing facilities located in Thirumudivakkam, Chennai (operated through its company) and Maraimalai, Kanchipuram (operated through its wholly owned Subsidiary, Asita Manufacturing Private Limited) in the state of Tamil Nadu. From December onwards, it has commenced operations of its manufacturing facility at Thirumudivakkam, Chennai.
As on December 31, 2024, it had engaged 563 Karigars (474 Karigars employed by the company and 89 Karigars employed by Asita Jewellery Manufacturing Private Limited).
The company operates one of the largest jewellery stores in India at Vijayawada, which is spread over total carpet area of 1,00,000 Sq. Ft. The company also operates two large format jewellery stores in Somajiguda and Vishakhapatnam, which are spread across total carpet area of 98,210 Sq. Ft. and 65,000 Sq. Ft. respectively and are amongst the largest jewellery retail stores in India, as per the report.
Lalithaa Jewellery Mart's restated consolidated revenue from operations increased by 26.07 per cent from Rs 13,316.80 crore in Financial Year 2023 to Rs 16,788.05 crore in Financial Year 2024 due to an increase in number of stores from 47 stores in Financial Year 2023 to 53 stores in Financial Year 2024, increase in average rate of gold and increased sale of gold.
For the nine months ended December 31, 2024, restated consolidated revenue from operations and profit after tax stood at Rs 12,594.67 crore and Rs 262.33 crore respectively.
The Indian gems and jewellery retail industry was valued at Rs 6.49 trillion in Fiscal 2024 and is expected to grow at a CAGR of 13–14 per cent to reach Rs 12–12.2 trillion by Fiscal 2029. South India remains the largest jewellery consuming region, accounting for 38-43 per cent of India's overall jewellery demand.
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