Newsletter
Lalithaa Jewellery Mart, one of South India’s largest gold retailers, is preparing to go public with a ₹1,700 crore IPO. Known for its large-format stores and wide presence in Tier II and III cities, the company has carved out a stronghold in southern India’s ornament economy.
The IPO comes at a time when organized jewellery retail is consolidating rapidly. And while Lalithaa has scale and margins on its side, investors will be watching for how it manages growth beyond its regional dominance.
IPO details
Objective
Lalithaa is raising ₹1,200 crore to open 12 new stores across high-growth Tier II and III locations in South India. The rest of the issue, worth ₹500 crore, is an offer for sale by existing shareholders. The capital will be used to expand physical retail capacity, not for debt reduction or acquisitions.
About the company
Founded in Chennai, Lalithaa Jewellery Mart sells gold, silver, and diamond jewellery under the “Lalithaa” brand. Gold jewellery accounts for nearly 94% of its revenue. As of December 2024, the company operates 56 stores in 46 cities, with most outlets larger than 5,000 sq. ft.
Its primary markets are Tamil Nadu, Telangana, Karnataka, and Puducherry. The business also runs two manufacturing units in Chennai and Kanchipuram, spanning over 63,000 sq. ft. combined.
To deepen customer loyalty, Lalithaa offers monthly investment schemes like ‘Dhana Vandhanam’ and ‘Free-yo-Flexi’, which together have over 4.2 lakh active customers.
Financial performance
Lalithaa has posted consistent growth over the past three years. Its revenue rose from ₹8,144 crore in FY22 to ₹16,800 crore in FY24, while net profit more than doubled to ₹359.8 crore. The company reported strong return ratios, with ROCE at 30.4% and ROE at 26%.
Its net worth as of FY24 stood at ₹1,667.8 crore, up from ₹1,071.6 crore in FY22. Borrowings have increased moderately in line with expansion.
Backers and buyers
The company is promoted by M. Kiran Kumar Jain and Hemaa Kiran Kumar Jain, who together hold 97.72% of the equity pre-issue. There are no institutional investors listed in the DRHP. Post-IPO, promoter stake will dilute but exact figures depend on final issue pricing.
Risk factors
The business is heavily reliant on gold jewellery, with limited exposure to other categories. This concentration increases vulnerability to changes in consumer preference, gold prices, or regulatory duty changes.
The business is also heavily concentrated in southern India, limiting geographic diversification. Any slowdown in this region could materially affect growth.
Customer advances under jewellery schemes contribute to working capital, creating potential liquidity pressure during redemption cycles. Any adverse movement in gold prices or import duties could affect margins and demand.
The pro factors
Lalithaa is among the fastest-growing organised jewellery players regionally, with a strong track record of profitability, store-led growth, and customer retention. Its focus on underserved Tier II and III markets gives it a scale advantage without significant competitive heat.
With over 4.2 lakh active customers in recurring schemes, the business enjoys steady cash flow and repeat engagement.
Final take
Lalithaa’s IPO offers exposure to a profitable, scaled-up gold retail brand with deep regional roots. The company’s financials, use of funds, and execution model are clear.
But its narrow product and market focus means this is not a broad-based consumption story. It’s a southern gold play, and investors should evaluate it as such.
FAQs
What is the total size of the Lalithaa Jewellery Mart IPO?
The IPO is worth ₹1,700 crore, comprising a ₹1,200 crore fresh issue and a ₹500 crore offer for sale.
What will Lalithaa Jewellery Mart use the IPO proceeds for?
The fresh issue will fund the opening of 12 new large-format stores across Tier II and III cities in South India.
Who are the promoters of Lalithaa Jewellery Mart?
M. Kiran Kumar Jain and Hemaa Kiran Kumar Jain are the promoters, holding 97.72% pre-issue.
How many stores does Lalithaa Jewellery operate?
As of December 31, 2024, the company operates 56 stores across 46 cities.
Where does Lalithaa Jewellery earn most of its revenue from?
Gold jewellery contributes nearly 94% of the company’s total revenue.
What are Lalithaa Jewellery’s key markets?
The company is primarily present in Tamil Nadu, Telangana, Karnataka, and Puducherry.
How has the company performed financially in recent years?
Revenue grew from ₹8,144 crore in FY22 to ₹16,800 crore in FY24, with profit more than doubling.
Does Lalithaa offer any jewellery savings schemes?
Yes, schemes like 'Dhana Vandhanam' and 'Free-yo-Flexi' serve over 4.2 lakh active customers.
Who are the lead managers and registrar for this IPO?
Anand Rathi Securities and Equirus Capital are lead managers; MUFG Intime India is the registrar.
Is there any institutional investor backing listed in the DRHP?
No institutional investors are listed in the DRHP as pre-IPO shareholders.
