Lalithaa Jewellery Mart files DRHP with Sebi to launch Rs 1,700 crore IPO; check details

Lalithaa Jewellery Mart, a homegrown player in the jewellery sector, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO), aiming to raise Rs 1,700 crore. The IPO consists of a fresh issue of Rs 1,200 crore and an offer-for-sale of Rs 500 crore by M Kiran Kumar Jain.

The IPO, valued at Rs 5 per share, includes reservations for eligible employees who will receive a discount when bidding in the employee reservation portion. Proceeds from the fresh issue will be utilised primarily for capital expenditure to set up new stores in India, with the remainder directed towards general corporate purposes.

Lalithaa Jewellery Mart, established in 1985 in the T. Nagar locality of Chennai, operates under the brand name 'Lalithaa' and offers a diverse range of gold, silver, and diamond jewellery tailored to the regional preferences of the southern Indian market. The company runs 56 stores across Tier I, II, and III cities, with a significant presence in Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and Puducherry.

The company reported the highest operating revenue per store among key organised jewellery players in India from Fiscals 2022 to 2024, with a compound annual growth rate (CAGR) in operating revenue of 43.62% for the same period. As of December 31, 2024, Lalithaa Jewellery Mart had 420,261 active customers enrolled in its jewellery schemes, 'Dhana Vandhanam' and 'Free-yo-Flexi'.

Lalithaa operates two manufacturing facilities located in Chennai and Kanchipuram, Tamil Nadu. The company employs 563 artisans, known as 'Karigars', to support its manufacturing operations. Notably, the firm owns one of the largest jewellery stores in India, located in Vijayawada.

Recent financial reports highlight a revenue increase of 26.07% from ₹13,316.80 crore in FY 2023 to ₹16,788.05 crore in FY 2024, driven by the expansion from 47 stores to 53, alongside an increase in the average rate of gold and gold sales. For the nine months ending December 31, 2024, revenue and profit after tax stood at ₹12,594.67 crore and ₹262.33 crore, respectively.

The Indian gems and jewellery retail industry, valued at ₹6.49 trillion in Fiscal 2024, is expected to grow at a CAGR of 13–14% by Fiscal 2029, with South India being a major consumer region. This growth context positions Lalithaa Jewellery Mart strategically within the expanding market.

The IPO is structured through a book-building process, with allocations of not more than 50% of the net offer to qualified institutional buyers, and not less than 15% and 35% to non-institutional and retail individual bidders, respectively. Anand Rathi Advisors and Equirus Capital are the book-running lead managers for this issue.

The company may consider a pre-IPO placement, which could reduce the fresh issue size by up to 20%. The equity shares are set to be listed on the National Stock Exchange of India Limited and BSE Limited, subject to regulatory approvals.