Lalithaa Jewellery Mart IPO opened for bidding today, August 17. The company aims to raise Rs 1,700 crore. The issue is a combination of 5.97 crore fresh shares of Rs 1,200.00 crore and an offer for sale of 2.49 crore shares amounting to Rs 500 crore. The company has set the issue price band between Rs 190 and Rs 201 per share. The issue will close on August 19.
The issue includes a reservation of up to 3,29,670 shares for employees offered at a discount of Rs 19 to the issue price.
The IPO was yet to be booked fully on day 01. The issue was subscribed to a total of 0.73 times. The retail investors booked the issue 0.77 times, the NIIs subscribed it 0.63 times, and the QIBs booked it 0.71 times. However, the employee category saw huge traction, with oversubscription on the first day itself, 1.58 times.
The shares of Lalithaa Jewellery have been changing hands at a premium of 15.3% to the issue price in the grey market at Rs 232. This translates to a profit of Rs 2,294 on one lot.
However, it is important to note that GMP is not an official metric to determine the listing price and fluctuates based on market mood and sentiment.
The allotment for the IPO is expected to be finalised on August 20, while the listing of shares on the bourses, NSE and BSE, is expected to be on August 24, as per the tentative schedule.
The company will be using the fresh proceeds towards funding expenditure for setting-up of 10 new stores (Rs 34.55 crore) and expenditure towards inventory costs (Rs 998.68 crore), while the remaining sum will be used for general corporate expenses.
A retail investor needs to apply for a minimum of one lot of 74 shares that amounts to Rs 14,874 at an upper price band.
Anand Rathi Advisors is the book running lead manager of the IPO and MUFG Intime India is the registrar of the issue.
Lalithaa Jewellery Mart Limited is a jewellery retail company with a strong regional presence across South India, catering primarily to the mass and value-conscious customer segment. Incorporated in November 1985, the company offers a diverse range of gold, silver, diamond, precious and semi-precious jewellery, with a focus on quality, craftsmanship and original designs.
The company has established strong brand acceptance in Tier II and Tier III cities across southern India. The company operates through Large Format Stores and Medium Format Stores, which support its retail expansion and scale. It follows an asset-light retail business model with backward integration, supported by efficient inventory management and quality control processes.