Lalithaa Jewellery Mart Sets IPO Price Band at Rs 190-201 for Rs 1,700 Crore Offering, Opening August 17.
Chennai-based jewellery retailer Lalithaa Jewellery Mart has outlined the details for its upcoming initial public offering (IPO), aiming to raise Rs 1,700 crores. The price band has been set between Rs 190-201 per share, with the subscription opening on August 17 and closing on August 19. The issue will involve a fresh share issue of Rs 1,200 crores and an offer-for-sale (OFS) from promoter Kiran Kumar Jain, worth Rs 500 crores. The shares are expected to be allocated by August 20 and are likely to list on both the BSE and NSE on August 24. Notably, the company has reserved Rs 6 crores worth of shares for employees, which will be available at a 10% discount to the final issue price.
A significant portion of the net offer is reserved for institutional investors, with 50% allotted to qualified institutional buyers (QIBs) and 35% for retail investors. The price-to-earnings (P/E) ratio based on diluted earnings for FY26 stands at approximately 9.95 times at the upper end of the price band, contrasting sharply with the industry average of 29.69 times. This relatively low P/E ratio may indicate a compelling investment opportunity for retail and institutional investors. Furthermore, investors are required to bid for a minimum of 74 equity shares, positioning the IPO as accessible to a broad base of the public.
The company plans to utilize the proceeds from the fresh issue for general corporate purposes, while the funds from the OFS will be directed to the promoter. Given the current trends, Lalithaa Jewellery Mart’s listing is happening amidst a robust IPO rush, with 34 firms planning to launch issues worth Rs 45,000 crores by September 30. This major influx demonstrates a vibrant sentiment in the Indian IPO market and may entice investors looking for growth potential in the retail segment, particularly in a company that has a strong foothold in southern India with 61 stores primarily in Tier II and III cities.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)