Joyalukkas IPO: The Jewellery Chain Firm Files Draft Papers To Raise Rs 2,300 Cr Via IPO

Joyalukkas India Ltd, a jewellery brand and store has filed drafts papers with market regulator Securities Exchange Board of India (SEBI) for an initial public offering (IPO) to raise roughly Rs 2300 crore.

According to a draft prospectus, the proceeds from the offering would be used to repay certain creditors and build additional stores. The Rs 1,400 crore sale proceeds would be used to pay down debt. As of February 28, 2022, the company's total outstanding debt was Rs 1,524.47 crore. The company intends to spend Rs 463.90 crore on the new showrooms' expansion.

The company has a large inventory of gold, diamond, and other precious stone jewellery, as well as platinum and silver jewellery, in a variety of designs. Each showroom's gold, diamond, and other jewellery collection reflects regional client tastes and designs.

Traditional, modern, and combination designs are available across all jewellery lines, uses, and price ranges. Each showroom's gold, diamond, and other jewellery selection matches regional client tastes and styles. Its primary strengths are its focus on design and innovation, ability to anticipate customer preferences and market trends, the complexity of designs, and product quality.

Last year ended September 2021, the firm's revenue was Rs 4,012.26 crore, up from Rs 2,088.77 crore the previous year. The net profit for the period was Rs 268.95 crore, up from Rs 248.61 crore the previous year.

The issue's lead managers are Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors, Haitong Securities India Pvt Ltd, and SBI Capital Markets.

About the "Joyalukkas India Ltd"

Joyalukkas India Ltd is a jewellery store chain company based in Kerala, India. It works in a market where small jewellery stores as well big market players such as Tanishq, a group company, and Warburg Pincus LLC-backed Kalyan Jewellers India Ltd. These companies got listed on the stock exchange last year.

As of January 31, 2022, the company operated 85 showrooms under the "Joyalukkas" name in 68 locations across India, with a total size of about 344,458 square feet. Out of 85 showrooms, 6 are large-format showrooms. These large showrooms have an area of 8,000 square feet or more than that. These large shows are located in a city like Chennai with over 13,000 square feet of area. As of 31 January 2022, it exceeded over 2 million customers in India.