Now Reading: Lalithaa Jewellery Mart to raise ₹1,700 crore via IPO
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Lalithaa Jewellery Mart to raise ₹1,700 crore via IPO
Lalithaa Jewellery Mart plans to raise ₹1,700 crore through an initial public offering, the Economic Times reports. The issue comprises a fresh issue of ₹1,200 crore for capital expenditure and an offer…
The Story in Brief
Lalithaa Jewellery Mart plans to raise ₹1,700 crore through an initial public offering, the Economic Times reports. The issue comprises a fresh issue of ₹1,200 crore for capital expenditure and an offer for sale of ₹500 crore. The promoter group's stake will fall from 97.7% to 82.9% after the IPO.
The company operates 61 stores in five southern states and Puducherry, with 92% of revenue coming from gold jewellery. Revenue rose 22.1% annually to ₹25,023.9 crore between FY24 and FY26, while net profit surged 67.5% to ₹1,009.8 crore. Revenue per store of ₹410.2 crore in FY26 is far above peers, but the company's valuation at a P/E multiple of up to 11 remains at the lower end of the industry range.
The Indian Opinion
The hype around Lalithaa's revenue per store and low valuation ignores a plain risk: every rupee comes from the South. The company's entire revenue is concentrated in five states, making it vulnerable to regional shocks. Stories about margin expansion also skip the fact that its EBITDA margin of 6.7% remains at the bottom of the peer range. Investors should watch whether the company uses the IPO money to open stores outside the South. A single store in Maharashtra or Delhi next year would signal real diversification.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
