Joyalukkas India has withdrawn application for tapping the capital market with an initial public offer (IPO) for raising about ₹2,300 crore largely to repay debt.

The application for IPO was withdrawn on February 17, said SEBI.

Last year, the company filed draft red-herring prospectus (DRHP) with SEBI to raise funds via public issue. The proceeds from the issue were to be used to pay back loans and to open new stores, the company had said in the DRHP.

Initial plans in 2018

However, the IPO market has proved unlucky yet again for the leading jewellery brand. Incidentally, Joyalukkas had put its IPO plans on the back-burner in 2018 after the Nirav Modi scam hit Punjab National Bank.

Most jewellery companies then had come under the scanner and banks tightened credit to jewellers. Under the changed circumstances, Joyalukkas had opted to put off its IPO plans in April 2018.

Promoted by Alukkas Varghese Joy, Joyalukkas is one of the largest jewellery retail and e-commerce chains, operating showrooms across 68 cities and is one of the biggest jewellery retailers in the country. The Kerala-based company was to hit the capital market early this year.

Industry outlook hit

However, the sudden rise in gold prices and fall in jewellery demand amid slowing economy have hit the outlook of the industry.

Edelweiss Financial Services, Haitong Securities India, Motilal Oswal Investment Advisors and SBI Capital Markets were chosen as the lead managers to the issue. The company had picked Edelweiss Financial Services, Jefferies Group LLC, Credit Suisse Group AG and IIFL Securities to arrange the potential share sale.

Some of the leading listed jewellery companies include Tata Group’s Titan (Tanishq), Warburg Pincus LLC-backed Kalyan Jewellers, Tribhovandas Bhimji Zaveri, Rajesh Exports and Thangamayil Jewellery.