Lalithaa Jewellery Mart Opens Rs 1,700 Crore IPO at Discount to Peers
The southern Indian retailer is seeking to raise funds for store expansion and inventory, pricing its shares at a significant discount to industry valuations following a year of rapid profit growth.
Lalithaa Jewellery Mart opened its initial public offering on August 17, aiming to raise Rs 1,700 crore through a combination of new shares and secondary stock. The three-day subscription period closes on August 19, with share allotment expected the following day and a stock exchange debut scheduled for August 24.
The company set a price band of Rs 190 to Rs 201 per share for the listing. At the upper end, the issue values the retailer at a price-to-earnings multiple of 9.95 times its diluted earnings for the 2026 fiscal year, which stands at a steep discount to the industry peer average of 29.69 times.
Institutional demand is already established, with the company securing Rs 508.20 crore from anchor investors ahead of the public launch. The allocation at the maximum price of Rs 201 drew participation from major financial firms including Goldman Sachs Bank Europe, Morgan Stanley investment funds, Kotak Mahindra Life Insurance, Bajaj Life Insurance and Greater India Portfolio.
This valuation strategy follows a period of aggressive financial expansion for the regional chain. Total income climbed 48 per cent to Rs 25,039.80 crore in the last fiscal year, while net profit surged 177 per cent to Rs 1,009.82 crore, providing a strong baseline for public market investors.
The bulk of the fresh capital will be directed toward physical expansion and stock replenishment across its network. The retailer plans to deploy Rs 998.68 crore on inventory and Rs 34.55 crore on capital expenditure to open 10 new large-format outlets, with the remainder reserved for general corporate purposes.
Lalithaa currently operates 61 stores across five southern Indian territories, with tier-two and tier-three cities generating over 60 per cent of its revenue. The broader domestic gold jewellery market is steadily shifting toward organised chains, which industry analysts project will capture up to half of the sector by 2030 as regulatory frameworks tighten.
Founder Kiran Kumar Jain is selling Rs 500 crore of his stake through an offer for sale, alongside the Rs 1,200 crore primary issuance managed by Anand Rathi and Equirus. Retail investors are allocated 35 per cent of the issue, requiring a minimum bid of Rs 14,874 for a single lot of 74 shares.
