Lalithaa Jewellery Mart IPO Upcoming

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To be announced
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About Lalithaa Jewellery Mart

Lalithaa Jewellery Mart, incorporated in 1985 and headquartered in Chennai, is a jewellery retailer operating in southern India. The company sells gold, silver, and diamond jewellery across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Puducherry. As of December 2024, Lalithaa operates 56 stores in 46 cities, with operations concentrated in Tier II and III markets. The company conducts in-house manufacturing and offers customer jewellery schemes including ‘Dhana Vandhanam’ and ‘Free-yo-Flexi’. Between fiscal years 2022 and 2024, Lalithaa reported a compound annual growth rate (CAGR) of 43.62% in operating revenue.

Financials of Lalithaa Jewellery Mart

Issue size

Funds Raised in the IPO Amount
Overall ₹1700 crores
Fresh Issue ₹1200 crores
Offer for sale ₹500 crores

Utilisation of proceeds

Purpose INR crores (%)
Funding expenditure towards setting up of 12 new stores 1014.50 (59.68%)
General Corporate Purposes –

Strengths

  • Regional jewellery retailer with 43.6% revenue CAGR (FY22–FY24) and 56 stores across South India
  • BIS-hallmarked gold jewellery retailer with in-house manufacturing operations
  • Store format includes 8 large and 39 medium outlets as of December 2024
  • Flexible jewellery schemes for repeat purchases and gold price fluctuation management
  • Asset-light model with ERP-led inventory control and quality check processes
  • Operations led by experienced promoter and management team

Risks 

  • Intense competition across channels with market share and pricing pressure risks
  • 100% store concentration in South India creating regional economic and operational exposure
  • Dependence on Karigars for production with quality and design confidentiality risks
  • Gold procurement without hedging exposes company to price and supply fluctuation risks
  • High inventory levels at 42.3% of revenue (Dec 2024) increasing unsold stock and margin risks
  • ₹12,149.9 million debt with high working capital needs (19.6% of revenue) creating funding pressures