Keep money ready! This jewelery sector company will bring IPO, will raise 1700 crores from market
Initial public issue (IPO) Good news for investors investing in. Another veteran company in the jewelery sector is going to bring its IPO. The IPO -bringing company is from Chennai and the name is Lalita Jewelery Mart. The company has filed documents with SEBI to raise Rs 1700 crore from IPO. According to the draft of the documents (DRHP), the proposed IPO of the Chennai company is a combination of new shares worth Rs 1,200 crore and the sale of shares worth Rs 500 crore by M Kiran Kumar Jain. Shares will also be reserved for employees in IPOs. Employees will also get discounts in it.
Where will the company use IPO money
According to DRHP paper, the company will use an amount of Rs 1,014.50 crore from the IPO to open new stores. A portion of the amount received from the IPO will be used for general company functioning. Lalitha Jewelery Mart opened her first store in TT Nagar area of Chennai in 1985. As of December 31, 2024, it had 56 stores, out of which 22 are in Andhra Pradesh, 20 in Tamil Nadu, seven in Karnataka, six in Telangana and one in Union Territory Puducherry. On the financial front, the integrated operating revenue and net profit of Lalita Jewelery Mart in the first nine months of the last financial year ended December 31, 2024 was Rs 12,594.67 crore and Rs 262.33 crore respectively. Anand Rathi Advisors and Equires Capital are the book-hanging lead manager for this issue. The company shares are proposed to list on BSE and NSE.
Company fights with these companies
The company, which sells gold jewelery under the Lalita Brand, compete with listed companies like Titan Company, Kalyan Jewelers India, Manoj Vaibhav James N Jewelers, PC Jewelers, PN Gadgil Jewelers, Senco Gold, Thangmayil Jewelery and Tribhuvandas Bhimji Zaveri. In recent times, jewelery sector companies have benefited from the rise in gold prices. Companies have seen a strong boom in profits and revenue. The demand for branded jewelery with changing times has increased rapidly.
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