Lalithaa Jewellery Mart's ₹1,700-crore IPO opens at ₹190-201. Anchor investors include Goldman Sachs and Morgan Stanley. Proceeds fund 10 new stores.
Lalithaa Jewellery Mart Ltd's ₹1,700-crore initial public offering opened for subscription on Monday at a price band of ₹190 to ₹201 per share. The IPO closes Wednesday.
The issue combines a fresh issue of up to ₹1,200 crore and an offer-for-sale of up to ₹500 crore by promoter M Kiran Kumar Jain. Investors can bid for a minimum of 74 equity shares and in multiples of 74 thereafter.
Under the book-building process, qualified institutional buyers get up to 50% of the net offer, non-institutional bidders at least 15%, and retail investors at least 35%.
The company raised ₹508.20 crore from anchor investors before the IPO opened. It allocated 2,52,83,581 equity shares at ₹201 apiece to 15 anchor investors, including Goldman Sachs Bank Europe SE – ODI, Morgan Stanley India Investment Fund Inc., Morgan Stanley Investment Funds Indian Equity Fund, Kotak Mahindra Life Insurance Company Limited, Bajaj Life Insurance Limited, Greater India Portfolio, and Sanshi Fund-I. Among domestic mutual fund schemes, the allocation went to ICICI Prudential Smallcap Fund, Bandhan Small Cap Fund, Bandhan Innovation Fund, Samco Active Momentum Fund, Samco Multi Cap Fund, Samco Small Cap Fund, Bank of India Consumption Fund, Bank of India Business Cycle Fund, and Bank of India Large Cap Fund.
Proceeds from the fresh issue – ₹1,014.50 crore – will fund capital expenditure for new stores in India and general corporate purposes.
The business
Founded in 1985, Lalithaa Jewellery Mart operates 61 stores across 51 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry under the 'Lalithaa' brand. It sells gold, silver and diamond jewellery tailored to regional preferences in southern markets. The company has a strong presence in Tier II and Tier III cities, where 45 stores contribute roughly 60% of revenue. It favours large and medium format stores, which it says drive higher revenue per store – ₹410 crore in FY26 versus ₹282 crore in FY25. Customer loyalty schemes such as 'Dhana Vandhanam' and 'Free-yo-Flexi' aim to boost repeat sales.
Revenue from operations rose to ₹25,023.93 crore in FY26 from ₹16,788.05 crore in FY24. Net profit jumped to ₹1,009.82 crore from ₹359.83 crore over the same period.
Valuation and risks
Lalithaa Jewellery is valued at an FY26 P/E multiple of 11.1x at the upper price band, in line with industry peers. The company posted a compound annual growth rate of roughly 22% in revenue, 60% in EBITDA and 68% in profit after tax between FY24 and FY26. Its EBITDA margin hit 6.5% in FY26, expanding 240 basis points year-on-year.
The strong growth over the past two years coincided with a roughly 2.3x rise in gold prices. The company has no hedging policy, so the full benefit of the price increase flowed into margins. That also means margins could moderate if gold prices stabilise, the company said in its offer document.
Anand Rathi Advisors and Equirus Capital are the book-running lead managers. MUFG Intime India is the registrar.
Lalithaa Jewellery plans to open 10 new stores using IPO proceeds to deepen its presence in southern markets.
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