The initial public offering (IPO) of Lalithaa Jewellery Mart opened for subscription on Monday, August 17, offering shares in the price range of Rs 190-201 apiece. Investors can bid for a minimum of 74 equity shares, with the issue scheduled to close on Wednesday, August 19. The total IPO size is Rs 1,700 crore.
This substantial offering comprises a fresh share sale of 5,97,32,655 equity shares and an offer-for-sale (OFS) of up to 2,48,75,621 equity shares, valued at Rs 500 crore. The net proceeds from the fresh issue are earmarked for funding new store setups, maintaining inventory, and fulfilling general corporate requirements.
About Lalithaa Jewellery Mart
Incorporated in 1985, Chennai-based Lalithaa Jewellery Mart is a prominent jewellery retail company with a strong regional footprint across South India. It primarily caters to the mass and value-conscious customer segments, offering a diverse array of gold, silver, diamond, precious, and semi-precious jewellery, with an emphasis on quality craftsmanship and original designs.
Anchor Investor Participation and Financials
Ahead of the public issue, Lalithaa Jewellery Mart successfully raised Rs 508.20 crore from 22 anchor investors. These investors were allotted 2,52,83,581 equity shares at Rs 201 apiece. Notable anchor investors included Goldman Sachs, Morgan Stanley, ICICI Pru MF, and Bandhan MF.
For the financial year ended March 31, 2026, the company reported a net profit of Rs 1,009.82 crore on a revenue of Rs 25,039.80 crore. This marks significant growth from the previous fiscal year, where it posted a net profit of Rs 364.73 crore on revenue of Rs 16,907.88 crore. At its current valuation, Lalithaa Jewellery Mart commands a market capitalization exceeding Rs 11,250 crore.
Issue Details and Brokerage Views
The IPO allocates 50 percent of the issue to qualified institutional bidders (QIBs), 15 percent to non-institutional investors (NIIs), and the remaining 35 percent to retail investors. The grey market premium (GMP) was last reported at Rs 26-30 apiece, suggesting a potential listing gain of up to 15 percent for investors.
Anand Rathi Advisors and Equirus Capital are the book-running lead managers for the issue, with MUFG Intime India acting as the registrar. The shares are slated for listing on both the BSE and NSE on Monday, August 24.
Brokerage Recommendations:
- SBI Securities: Neutral
Highlighted Lalithaa Jewellery's strong presence in high-growth Tier II and III cities in South India and its asset-light business model. The firm noted a CAGR of 22% in revenue and 68% in PAT during FY24-FY26, valuing the company at an FY26 P/E of 11.1 times, on par with peers. They recommend a 'neutral' rating, preferring to track post-listing performance.
- Swastika Investmart: Subscribe (with moderate conviction)
Noted the company's valuation at a 75% discount on a P/E basis compared to national organized peers like Kalyan Jewellers and Titan. While net margins are slimmer due to value pricing, return ratios significantly outperform. They advised moderate conviction for listing gains and long-term investors comfortable with risks like negative operating cash flow in FY26 and an unresolved GST dispute.
- SMIFS: Subscribe (long-term)
Recommended subscribing from a long-term investment perspective, citing strong execution, industry-leading ROE and ROCE among listed peers, and a scalable business model positioned to capitalize on growth in organized jewellery retail.
- BP Equities: Subscribe
Valued the issue at 11.1 times FY26 diluted EPS of Rs 18.0, a meaningful discount to the listed peer average P/E of 29.7 times. Combined with strong return ratios, regional franchise, and expansion opportunities, they recommend a 'subscribe' rating.
- Master Capital Services: Subscribe for long-term
Emphasized Lalithaa Jewellery's strong presence across South India, particularly in Tier II and III cities, its 61-store network, in-house manufacturing, and diverse portfolio. These factors support its ability to cater to evolving consumer preferences and capture market growth.
- Ventura Securities: Subscribe
Highlighted the South India-focused retailer's 61 stores, serving mass and value-conscious consumers. Noted revenue growth from Rs 16,788 crore in FY24 to Rs 25,024 crore in FY26, with PAT increasing to Rs 1,010 crore. Risks include high dependence on gold jewellery and Tamil Nadu, gold-price volatility, and negative operating cash flow.
Disclaimer: This article provides information for educational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.