Markets

Joyalukkas India files DRHP for IPO to raise Rs 2,300 crore 

V.Sajeev Kumar | Updated on: Mar 28, 2022

Puducherry:10:01:2018: Income-Tax investigation wing conduct raids on the Joyalukkas Jewellery Showroom at Neru Street in Puducherry on Wednesday.Photo:M_SAMRAJ.

To open 8 new showrooms over the next two years across Telengana, Maharashtra, Odisha and Karnataka 

Kerala-based retail jeweller Joyalukkas India has filed a draft red herring prospectus with SEBI to raise Rs 2,300 crore through an initial public offering, with a fresh issue of shares, with no offer for sale component.

The issue has a face value of Rs 10 per equity share for the proposed share sale. The offer is being made through the Book Building Process, wherein not more than 50 per cent of the offer will be available for allocation to qualified institutional buyers, not less than 15 per cent to non-institutional bidders and not less than 35 per cent to retail individual bidders.

The proceeds from its fresh issuance worth Rs 1,400 crore will be used for the repayment or prepayment of borrowings, and Rs 463.90 crore will be used to finance the opening of eight new showrooms, besides general corporate purposes.

The company clocked a profit of Rs 471.75 crore in the financial year FY21 against Rs 40.71 crore in the previous year. Revenue from operations climbed 0.53 per cent from Rs 8,023.79 crore in fiscal 2020 to Rs 8,066.29 crore in fiscal 2021, attributable to an increase in retail sales and other operation revenue, following the end of Covid-19. Profit for the six-month period ended September 2021 stood at Rs 268.95 crore on revenue of Rs 4,012. 26 crore.

According to a company-commissioned Technopack report, in FY21 it recorded the highest EBITDA per square foot and amongst the highest PAT amongst the top players in India. Net Debt to Equity Ratio has fallen from 1.04 in 2019 to 0.77 as on September 30, 2021.

The size of the Indian jewellery retail sector was close to $60 billion (Rs 4.58 trillion) in fiscal 2020, and it is projected to increase at a CAGR of 9 per cent to reach $91 billion (Rs 6.94 trillion) by fiscal 2025. However, organised jewellery retail would increase at a quicker rate, with a CAGR of roughly 14 per cent from $19 billion (Rs1.45 trillion) in fiscal 2020 to $36 billion (Rs2.75 trillion) in fiscal 2025. The share of organised jewellery retail in the whole jewellery market is projected to rise from 32 per cent in fiscal 2020 to 40 per cent in fiscal 2025.

Edelweiss Financial Services Ltd, Haitong Securities India Private Ltd, Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd are the book-running lead managers to the issue.

Published on March 28, 2022
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