Lalithaa Jewellery files draft papers with Sebi, to raise ₹1,700 cr via IPO

Jewellery player Lalithaa Jewellery Mart has filed preliminary papers with markets regulator Sebi seeking its approval to raise ₹ 1,700 crore through an Initial Public Offering (IPO).

The Chennai-based company's proposed IPO is a combination of a fresh issue of shares worth ₹1,200 crore and an offer-for-sale of equities valued at ₹500 crore by M Kiran Kumar Jain, according to the Draft Red Herring Prospectus (DRHP).

The issue includes a reservation for a subscription by eligible employees, and a discount is being offered to such employees.

As per the draft papers filed on Friday, proceeds from the fresh issue to the tune of ₹1,014.50 crore will be used for setting up new stores, and a portion would be utilised for general corporate purposes. 

Lalithaa Jewellery Mart, which opened its first store in 1985 in T Nagar locality of Chennai, sells gold jewellery, silverware and diamond jewellery.

It had 56 stores, out of which 22 are in Andhra Pradesh, 20 in Tamil Nadu, seven in Karnataka, six in Telangana and one in the Union Territory of Puducherry as of December 31, 2024.

On the financial front, Lalithaa Jewellery Mart's consolidated revenue from operations and profit after tax stood at ₹12,594.67 crore and ₹262.33 crore, respectively, for the nine months ended December 31, 2024.

Anand Rathi Advisors and Equirus Capital are the book-running lead managers of the issue. The equity shares are proposed to be listed on the BSE and NSE.