Joyalukkas India files DRHP to raise Rs 2,300 crore via IPO

Kerala-based retail jeweller Joyalukkas India has filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 2,300 crore through an initial public offering (IPO).

The issue has a face value of Rs 10 per equity share for the proposed share sale. The offer is being made through the book building process, wherein not more than 50 per cent of the offer shall be available for allocation to qualified institutional buyers (QIB), not less than 15 per cent shall be available for allocation to non-institutional bidders and not less than 35 per cent shall be available for allocation to retail individual bidders.

Joyalukkas jewellery business involves the sale of gold jewellery, studded jewellery, and other jewellery products including diamonds, platinum, silver, and other precious stones.

As of September 30, 2021, as much as 93.33 per cent of its revenue from operations came from the south region, followed by 3.37 per cent from the west. Also, the company intends to open 8 new showrooms over the next 2 years across Telangana, Maharashtra, Odisha and Karnataka.

The proceeds from its fresh issuance worth Rs 1,400 crores for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and Rs 463.90 crore for financing the opening of eight new showrooms besides general corporate purposes.

The company was founded by the promoter and managing director, Alukkas Varghese Joy, who has over 33 years of expertise in the jewellery industry. It began operations in 2002 by opening a showroom in Kottayam, Kerala, and have since expanded to 85 showroom networks under the “Joyalukkas” brand, located across 68 cities in India with an aggregate area of approximately 3,44,458 square feet, as of January 31, 2022.

Joyalukkas clocked a profit of Rs 471.75 crore in the financial year FY21 against Rs 40.71 crore in the previous year. Revenue from operations climbed 0.53 per cent from Rs 8,023.79 crore in fiscal 2020 to 8,066.29 crore in fiscal 2021, attributable to an increase in retail sales and other operating revenue following the end of Covid-19.

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