Chennai-based Lalithaa Jewellery Mart has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,700 crore through an initial public offering (IPO). The company plans to use the funds to support its expansion across southern India.
Lalithaa Jewellery Mart is a retail chain that sells gold, silver, and diamond jewellery, mainly catering to customers in the southern part of the country.
The IPO will consist of two parts: a fresh issue of shares worth up to ₹1,200 crore and an offer-for-sale (OFS) of shares worth ₹500 crore by the company’s promoter, M. Kiran Kumar Jain. The company may also offer a discount to eligible employees and could conduct a pre-IPO placement of up to 20% of the fresh issue. If this pre-IPO placement happens, the fresh issue size will be reduced accordingly.
According to the DRHP, the company will use most of the proceeds—around ₹1,014.5 crore—for capital expenditure to open new stores across India. The remaining funds will go toward general corporate purposes.
The IPO will follow the book-building process. Up to 50% of the net offer will be reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors.
Lalithaa Jewellery Mart plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
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