Lalithaa Jewellery IPO: Rs 1,700 Crore Plan for South Expansion
Lalithaa Jewelry Mart is making a bold move! The Chennai-based retailer plans a ₹1,700 crore IPO, setting the stage for notable expansion across India. This strategic move aims to strengthen its footprint in the competitive gold jewellery market, fueled by the recent filing with the Securities and Exchange Board of India (SEBI). The IPO will allocate funds for new store establishments; the company has already proven strong revenue growth and solid customer loyalty. with 56 stores currently operating across South India, Lalithaa Jewellery Mart is poised to capitalize on the burgeoning Indian gems and jewellery retail industry, projected to reach trillions in value by fiscal 2029.Read more at news Directory 3. Discover what’s next for this industry leader.
Lalithaa Jewellery Mart Plans ₹1,700 Crore IPO for Expansion
Lalithaa Jewellery Mart, a jewellery retailer based in Chennai, 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 IPO aims to fuel the company’s expansion plans in the competitive gold jewellery and diamond jewellery market.
The IPO comprises a fresh issue of up to ₹1,200 crore and an offer-for-sale (OFS) of ₹500 crore by promoter M. Kiran Kumar Jain. The company may also consider a pre-IPO placement of up to 20% of the fresh issue.
According to the filing, the proceeds from the fresh issue will primarily be used for capital expenditure, with ₹1,014.50 crore allocated for establishing new stores across India. The remaining funds will be used for general corporate purposes.
Founded in 1985, Lalithaa jewellery Mart has grown to operate 56 stores across southern India, including Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, and Puducherry. These stores cover a total operational area of 609,408 square feet.
A CRISIL report cited in the DRHP indicates that Lalithaa Jewellery Mart recorded the highest operating revenue per store among key organized jewellery players in India between fiscal years 2022 and 2024. The company also experienced a compound annual growth rate (CAGR) of 43.62% during the same period.
The company operates manufacturing units in Tamil Nadu and boasts a large jewellery store in Vijayawada, along with large-format stores in Somajiguda and Vishakhapatnam.
Lalithaa Jewellery Mart reported a 26.07% increase in restated consolidated revenue, from ₹13,316.80 crore in fiscal 2023 to ₹16,788.05 crore in fiscal 2024.for the nine months ended Dec. 31, 2024, the company posted revenue of ₹12,594.67 crore and a profit after tax of ₹262.33 crore.
What’s next
The Indian gems and jewellery retail industry is projected to experience substantial growth, reaching ₹12–12.2 trillion by fiscal 2029. Lalithaa Jewellery Mart’s IPO positions it to capitalize on this expanding market, especially in South India, a major consumer of gold and diamond jewellery.