Gold jeweller Joyalukkas India files IPO papers to raise Rs 2,300 cr

Kerala-based jewellery retailer Joyalukkas India has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 2,300 crore in fresh capital through an initial public offering (IPO) 

The company plans to use Rs. 1,400 crore of IPO proceeds for cutting debt and about Rs 464 crore for expanding operations, which includes opening eight new showrooms. Over the next two years, Joyalukkas plans to open new stores in Telengana, Maharashtra, Odisha and Karnataka.

At present, the company generates over 90 per cent of its revenues from southern states. 

Joyalukkas is founded by Alukkas Varghese Joy, who has over 33 years of expertise in the jewellery industry. The company began operations in 2002 by opening a showroom in Kottayam, Kerala. It has since expanded its network to 85 showrooms under the Joyalukkas brand, across 68 cities in India. The company also operates several large-format stores with an area of over 8,000 square feet.

Its jewellery items are divided into four categories: gold jewellery, diamond jewellery, silver jewellery, platinum and other precious metal and stone -based jewellery.

In FY21, Joyalukkas had clocked net profit of Rs 472 crore on revenues of Rs 8,066 crore. 

Profit for the six-month period ended September 2021, its profit stood at Rs 269 crore on revenue of Rs 4,012 crore. As on September 30, 2021, Joyalukkas’ net debt to equity ratio was 0.77.

The company has one of the highest operating profit per square foot amongst large jewellers in the country. 

Currently, among the large listed jewellers in the country are Titan (Tanishq) and  Kalyan Jewellers.

Edelweiss Financial, Haitong Securities, Motilal Oswal Investment Advisors and SBI Capital Markets Limited are the book running lead managers to the issue.