Share Market News / Keep your money ready! This company from the jewellery sector will bring an IPO

Share Market News: Another big good news has come for the investors of the jewelery sector. Chennai's reputed company Lalitha Jewelry Mart is going to bring its initial public offering (IPO). The company has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 1700 crore through this IPO.

Structure and features of the IPO

• According to the DRHP, this IPO will be divided into two parts:
• New equity shares worth Rs 1,200 crore
• Offer for sale (OFS) of shares worth Rs 500 crore, which will be brought by the company's promoter M Kiran Kumar Jain.
• The company will also reserve shares for employees, in which they will also be given the benefit of special discounts.

Where will the IPO money be spent

Lalita Jewelry Mart will use the amount of Rs 1,014.50 crore to be received from this IPO mainly for setting up new stores. Additionally, some funds will also be used for general corporate purposes.

Current status of the company

Started in 1985 in T Nagar, Chennai, the company has now become a well-known brand in South India. As of December 31, 2024, it had a total of 56 stores:

• Tamil Nadu: 20
• Andhra Pradesh: 22
• Karnataka: 7
• Telangana: 6
• Puducherry: 1

Financial performance

The company has performed brilliantly in the first nine months of 2024.

• Revenue: ₹12,594.67 crore
• Net profit: ₹262.33 crore

On the basis of this strong financial performance, the company is trying its best to win the confidence of investors.

Key book-running lead managers

Anand Rathi Advisors and Equirus Capital are playing a key role in the IPO process. The company's shares will be listed on BSE and NSE.

Competition and Market Position

Lalita Jewellery Mart is facing tough competition from many giants in the market, including:

• Titan Company
• Kalyan Jewellers India
• Senko Gold,
• PC Jewellers,
• Manoj Vaibhav Gems & Jewellers
• Tribhuvandas Bhimji Zaveri, etc.

In recent years, the rise in gold prices and the increasing demand for branded jewellery have given a new impetus to this sector. This has led to a tremendous jump in the profits and revenues of the companies.