Chennai — Lalithaa Jewellery Mart Limited’s initial public offering closed on Wednesday after recording total subscriptions of 62.97 times the shares on offer across the three-day issue window.
The ₹1,700 crore IPO, which was priced within a band of ₹190 to ₹201 per share, received bids for approximately 39.52 crore shares against the 6.27 crore shares on offer.
Qualified Institutional Buyers (QIBs) drove the strongest demand during the bidding period, subscribing 145.38 times their reserved portion. Within the QIB segment, domestic financial institutions—including banks, insurance companies, and financial institutions—were the most active, placing bids for over 110 crore shares. Foreign institutional investors bid for approximately 95.6 crore shares, while mutual fund participation remained comparatively modest at 8.53 crore shares.
The Chennai-based jewellery retailer currently operates 61 stores across five southern states. According to the company's expansion plans, ₹1,033 crore of the fresh issue proceeds will be utilized to fund the opening of 10 new retail stores.
Ahead of the IPO closure, brokerage firm SBI Securities assigned a Neutral rating to the issue. The brokerage noted that Lalithaa Jewellery's revenue and profit growth over the FY24–26 period—projecting a compound annual growth rate (CAGR) of approximately 22 percent and 68 percent, respectively—was substantially aided by a roughly 2.3x surge in gold prices during the same timeframe. However, SBI Securities cautioned that because the company does not carry a hedging policy, its profit margins could moderate once gold prices stabilize. At the upper end of the price band, the stock is valued at 11.1 times FY26 earnings, which aligns broadly with listed peers in the sector.
"The strong institutional demand for the Lalithaa Jewellery IPO highlights continued investor confidence in established regional retail brands with clear expansion footprints. However, as noted by market observers, businesses operating in commodity-linked sectors like jewellery must carefully manage inventory and price volatility risks. Deploying capital towards retail expansion while maintaining disciplined operational strategies will be key to sustaining long-term margins and stakeholder value." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
