The Lalithaa Jewellery Mart Limited initial public offering experienced a significant shift in momentum on its second day of bidding. By the close of Tuesday, the overall subscription reached 3.07 times, marking a sharp increase from the 0.69 times subscription recorded at the end of the first day.
According to data as of the close on August 18, total bids received stood at 19,26,08,310 shares against 6,27,61,403 shares on offer. This reflected an increase in investor participation across multiple categories over the course of the trading day.
Qualified institutional buyers crossed their respective threshold on Day 2, recording a subscription of 1.02 times. Within the QIB category, foreign institutional investors accounted for 1,18,88,396 shares. Meanwhile, the 'Others' subcategory contributed 63,62,890 shares, marking a notable change from virtually no activity recorded in that segment on Day 1. Additionally, the employee reserved portion reached 3.09 times.
This pattern of accelerated activity aligns with trends observed in several Indian initial public offerings, where institutional and high-net-worth individual participation often increases closer to the closing date. The public issue is scheduled to close on August 19, with potential for further movement in QIB subscriptions on the final day.
Ahead of the final day, brokerage firm SBI Securities maintained a Neutral rating on the issue. The brokerage highlighted the company's lack of a gold price hedging policy as a key risk factor that could impact margins once gold prices stabilise, despite noting strong growth delivered by Lalithaa Jewellery Mart Limited between FY24 and FY26.
"The sharp pickup in subscription rates on the second day of the Lalithaa Jewellery Mart Limited IPO highlights a familiar pattern in the Indian primary market, where institutional interest often builds closer to the deadline. However, as noted by analysts, companies operating in sectors with commodity exposure must carefully evaluate risk management strategies like hedging to protect margins against market volatility. Investors should closely assess these operational fundamentals alongside subscription metrics before making long-term commitments." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
