Lalithaa Jewellery Mart shares make a strong market debut; stocks list at 32% premium on BSE, NSE

Shares of Lalithaa Jewellery Mart made a strong stock market debut on Monday, August 24 as the jewellery retailer was listed at Rs 265.30 on BSE, commanding a premium of 31.99 per cent over the issue price of Rs 201. Similarly, the stock settled with a premium of 31.84 per cent over the given issue price on NSE at Rs 265 in its maiden trading session.

Investors made a profit of more than Rs 4,750 on each lot of 74 equity shares. However, the listing of Lalithaa Jewellery Mart has been slightly below the expectations. Ahead of its debut, shares of Lalithaa Jewellery were commanding a grey market premium (GMP) around Rs 75 per share, indicating a potential listing premium of about 37 per cent for the investors.

The IPO of Lalithaa Jewellery Mart was open for subscription between August 17 and August 19. The company offered its shares in the price band of Rs 190-201 per share, with a lot size of 74 equity shares. The company raised around Rs 1,700 crore through the public issue, which included a fresh share sale of Rs 1,200 crore and offer-for-sale (OFS) of up to Rs 500 crore.

The issue received strong demand across investor categories and was subscribed a solid 62.97 times overall with more than 45.44 lakh applications valuing for only at Rs 80,000 crore. The QIB portion was subscribed over 145.38 times, while the NII portion was booked 73.80 times and retail portions a demand for 11.81 times during the bidding.

Incorporated in 1985, Chennai-based Lalithaa Jewellery Mart is a jewellery retail company with a strong regional presence across South India, catering primarily to the mass and value-conscious customer segment. It offers a diverse range of gold, silver, diamond, precious and semi-precious jewellery, with a focus on quality, craftsmanship and original designs.

Brokerage firms were largely positive on the issue, suggesting to subscribe to it. Anand Rathi Advisors and Equirus Capital were the book-running lead managers to the issue, while MUFG Intime India served the registrar.