Oswal Pumps IPO Set to Open It's IPO...
10 Jun, 2025
Lalithaa Jewellery Mart Ltd, the leading jewellery retail chain from South India, is preparing to launch its IPO to raise funds from the Indian capital market. The company has filed its DRHP with the Securities and Exchange Board of India for an IPO worth ₹1700 crore. This is a major milestone in the company's growth journey and is going to make its position even stronger in the Indian jewellery market.
As per the DRHP, there will be a fresh issue worth ₹1250 crore with an offer for sale (OFS) of shares worth up to ₹450 crore in this IPO. The company is planning to use the fresh issue proceeds in the expansion plans, repay certain borrowings, and meet general corporate purposes. Whereas all the proceeds coming from the offer for sale will be used to provide an exit opportunity to some of the early investors.
Lalithaa Jewellery Mart was founded by Kiran Kumar in 1985 as a single store, and since then it has spread across Tamil Nadu, Andhra Pradesh, Karnataka and Pondicherry with a network of over 30 showrooms. The company is renowned for its wide range of jewelry whether it's gold, diamond or silver. The company has won its customers trust with transparent pricing and a customer-centric approach.
Lalith Jewellery Mart has made a strong brand presence in South India by offering BIS-hallmarked gold jewelry and maintaining a reputation for purity and trust. The company’s business model focuses on high volumes with low margins, which helps it attract a broad customer base including value-conscious buyers.
Lalithaa Jewellery Mart has shown a strong financial performance in recent years. If we talk about the financial year ended March 31, 2024, the company has reported a revenue of ₹8,500 crore with a net profit of ₹320 crore. This shows a steady growth of the company even in such a volatile market where gold prices fluctuate daily and consumer preferences change constantly.
The company has efficient inventory management, a strong supply chain and operational efficiency, which contributed to its healthy margins and consistent profitability. The IPO will help the company to strengthen its balance sheet and support its future growth initiatives.
A significant portion of the IPO proceeds from the fresh issue will be utilised to open new showrooms in key markets, upgrade existing stores, and invest in technology to enhance the customer experience. The company also plans to reduce its debt burden, which will improve its financial flexibility and enable it to pursue strategic opportunities.
Lalithaa Jewellery Mart aims to leverage the growing demand for branded jewellery in India, driven by rising disposable incomes, urbanisation, and increasing consumer preference for organised retail. The company’s expansion strategy includes entering new geographies and launching exclusive collections to cater to evolving tastes.
The Indian jewellery market, estimated to be worth over $60 billion, is expected to grow at a CAGR of 7-8% over the next five years, according to industry reports. The sector is witnessing a shift towards organised players, with consumers increasingly seeking transparency, quality assurance, and a superior shopping experience.
Lalithaa Jewellery Mart’s IPO comes at a time when several jewellery retailers are looking to capitalise on the formalisation of the sector and the growing preference for branded jewellery. The company’s strong regional presence, trusted brand, and expansion plans position it well to benefit from these industry trends.
ICICI Securities, Axis Capital, and SBI Capital Markets are acting as the book-running lead managers for the IPO. The company is expected to finalise its share allotment and listing dates after receiving regulatory approvals.
With its IPO, Lalithaa Jewellery Mart joins the ranks of other prominent jewellery retailers who have tapped the capital markets to fund their growth ambitions. The offering is keenly awaited by investors, given the company’s track record, brand equity, and growth prospects.
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