Chennai-based Jewellery Player Lalithaa Jewellery Mart, operating under the brand name “Lalithaa”, offering a diverse range of gold jewellery, silver jewellery, and diamond jewellery across styles, designed to cater to regional preferences of the southern Indian jewellery markets, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 1,700 crore through Initial Public Offering (IPO).
The IPO, with a face value of Rs 5, is mix of a fresh issue of up to Rs 1200 crore and an offer-for-sale up to Rs 500 crore by M. Kiran Kumar Jain. It includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The company, in consultation with the book-running lead managers, may consider a pre-IPO placement. If such placement is completed, the fresh issue size will be reduced. The pre-IPO placement if undertaken shall not exceed 20% of the size of the fresh issue.
The proceeds from the fresh issue to the extent of Rs 1014.50 crore for funding of capital expenditure for setting up new stores in India; and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Lalithaa Jewellery Mart opened its first store in 1985 in T.Nagar locality of Chennai which is a hub for a silk and jewellery retail outlets. (Source: CRISIL Report)
It primarily sells gold jewellery and other offerings include silverware and diamond jewellery. It serves the southern Indian market with stores operational in Tier I, II and III cities with authenticated BIS-hallmarked jewellery through 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 Fiscals 2022 to 2024 and the nine-month period ended December 31, 2024, according to a CRISIL report mentioned in the DRHP. The Company is also the second fastest growing regional jewellery player amongst key organised jewellery players in India basis operating revenue growth between Fiscals 2022 to 2024. The Company reported operating revenue CAGR of 43.62% between Fiscals 2022 and 2024. (Source: CRISIL Report).
The Company also offers jewellery schemes such as ‘Dhana Vandhanam’ and ‘Free-yo-Flexi’ that attracts customers on a repeated basis. As of December 31, 2024, 420,261 customers are enrolled and are active in its schemes.
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. From December onwards, it has commenced operations of its manufacturing facility at Thirumudivakkam, Chennai.
As on December 31, 2024, it had engaged 563 Karigars (474 Karigars employed by the Company and 89 Karigars employed by Asita Jewellery Manufacturing Private Limited).
The Company operates one of the largest jewellery stores in India at Vijayawada, which is spread over total carpet area of 1,00,000 Sq. Ft. (Source: CRISIL Report) Our Company also operates two large format jewellery stores in Somajiguda and Vishakhapatnam, which are spread across total carpet area of 98,210 Sq. Ft. and 65,000 Sq. Ft. respectively and are amongst the largest jewellery retail stores in India (Source: CRISIL Report).
Lalithaa Jewellery Mart’s restated consolidated revenue from operations increased by 26.07% from ₹13,316.80 crore in Financial Year 2023 to ₹ 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.
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.
The Indian gems and jewellery retail industry was valued at ₹6.49 trillion in Fiscal 2024 and is expected to grow at a CAGR of 13–14% to reach ₹12–12.2 trillion by Fiscal 2029. South India remains the largest jewellery consuming region, accounting for 38-43% of India’s overall jewellery demand. Anand Rathi Advisors Limited, and Equirus Capital Private Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
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