Joyalukkas IPO: Kerala-based jewellery retail chain Joyalukkas India Ltd filed draft papers with the Securities Exchange Board of India (SEBI) to raise around Rs 2300 crore via initial public offerings (IPO). In 2018, Joyalukkas had to shelve its IPO plans due to adverse market conditions. The net proceeds of the issue will be utilised for repayment or prepayment, in full or part, of certain borrowings availed by the company worth Rs 1,400 crore. Upon successful listing the bourses, Joyalukkas India will join the likes of Titan Company, and Kalyan Jewellers India.
Joyalukkas IPO: Rationale
The proceeds from the issue worth Rs 1,400 crore will be used to repay the debt. As of February 28, 2022, the total outstanding debt of the firm was at Rs 1,524.47 crore. The firm also plans to use Rs 463.90 crore for financing the opening of the new showrooms. The firm operates 85 showrooms under the “Joyalukkas” brand located across 68 cities in India with an aggregate area of approximately 344,458 square feet, as of January 31, 2022. Of these 85 showrooms, six are large-format showrooms (with an area of 8,000 square feet or more), including the largest showroom in Chennai, Tamil Nadu that has an area of over 13,000 square feet.
Joyalukkas IPO: Financials
For the half-year ended in September 2021, its revenue was at Rs 4,012.26 crore against Rs 2,088.77 crore a year ago. Net profit for the period stood at Rs 268.95 crore versus Rs 248.61 crore last year. The weighted average return on net worth stood at 16.43. The average industry peer group P/E ratio is 99.71, the company said in its DRHP.
The book running lead managers to the issue are Edelweiss Financial Services, Haitong Securities India Private, Motilal Oswal Investment Advisors, and SBI Capital Markets. The registrar to Joyalukkas India is Link Intime India.
Meanwhile, gold jeweller Joyalukkas India Ltd. was named among five Indian jewellery brands that made it to the list of top 100 luxury companies across the world, according to a new report. Tata Group’s Titan Company jumped three places on the top 100 ‘Global Powers of Luxury Goods’ list to rank 22 and was among the 20 fastest-growing luxury goods companies.
Joyalukkas IPO: About the Company
It maintains an inventory of jewellery made of gold, diamond, and other precious stones, platinum and silver, all with an extensive array of designs. Its gold, diamond, and other jewellery inventory in each individual showroom reflect regional customer preferences and designs.
Its product profile includes traditional, contemporary, and combination designs across jewellery lines, usages, and price points. Its gold, diamond, and other jewellery inventory in each showroom reflects regional customer preferences and designs. Its focus on design and innovation, ability to recognize consumer preferences and market trends, the intricacy of our designs, and the quality of the products are its key strengths.
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