hennai-based Lalithaa Jewellery Mart has received final observation from the capital markets regulator -- Securities and Exchange Board of India (SEBI) - to raise Rs 1,700 crore through an initial public offering (IPO). The company had filed its IPO papers with Sebi on June 6.
The IPO consists of a fresh issuance of equity shares worth Rs 1200 crore and an offer-for-sale of shares worth Rs 500 crore by promoter Kiran Kumar. The proceeds from the fresh issue will be used for funding of capital expenditure for setting up new stores in India and general corporate purposes.
Lalithaa Jewellery opened its first store in 1985 in T Nagar locality of Chennai. It primarily sells gold jewellery, and among its other offerings include silverware and diamond jewellery. It serves the southern Indian market with stores operational in Tier 1, 2, and 3 cities with its 56 stores, out of which 22 in Andhra Pradesh, 20 are in Tamil Nadu, seven in Karnataka, six in Telangana and one in the Union Territory of Puducherry, spread across a total operational area of 6,09,408 sq. ft., as of December 31, 2024, with 47 stores with an aggregate area of each store more than 5,000 sq. ft.
It had the highest operating revenue per store amongst the key organised jewellery players in India between FY22 and FY24 and the nine-month period ended December 31, 2024, according to the DRHP. The company is also the second fastest growing regional jewellery player amongst key organised jewellery players in India basis operating revenue growth during the time. The company reported operating revenue CAGR of 43.62% between FY22 and FY24, as per CRISIL report.
It operates two manufacturing facilities located in Thirumudivakkam, Chennai (operated through its company) and Maraimalai, Kanchipuram (operated through its wholly owned subsidiary, Asita Manufacturing Private Limited) in the state of Tamil Nadu. As on December 31, 2024, it had engaged 563 workers (474 workers employed by the company and 89 Karigars employed by Asita Jewellery Manufacturing Private Limited).
Lalithaa Jewellery Mart’s restated consolidated revenue from operations increased by 26.07% from Rs 13,316.80 crore in Financial Year 2023 to Rs 16,788.05 crore in Financial Year 2024 due to an increase in number of stores from 47 stores in Financial Year 2023 to 53 stores in Financial Year 2024, increase in average rate of gold and increased sale of gold.
Its net profit was Rs 359.8 crore during FY24 vis-à-vis Rs 238.3 crore during FY23. For the nine months ended December 31, 2024, restated consolidated revenue from operations and profit after tax stood at ₹12,594.67 crore and ₹262.33 crore, respectively.