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Kerala-based jewellery retail chain Joyalukkas’s IPO plan is on track, undeterred by slowdown fears or market uncertainties, according to its Chairman, Joy Alukkas.
“We are moving as per schedule and are awaiting clearance from SEBI. The date of the issue is expected to be announced by early 2023,” Alukkas told BusinessLine when asked about the timing of the IPO in the current business environment.
“The slowdown being experienced right now will not impact gold business. The reason is that, worldwide, customers have faith in the yellow metal as it will ensure them timely liquidity for all their needs,” he added.
The proceeds of the IPO will be used to repay debts and for expansion, he said.
In India, gold consumption is back to pre-pandemic levels, with a CAGR of 8-10 per cent, he pointed out. The recent festival sales witnessed a 30 per cent increase. Gold coins and bars are selling more as they are seen to remain a safe investment option.
The rising demand for 18-carat lightweight ornaments is a new trend, especially among the younger generation, and the company is focusing more on studded jewellery, he said.
On gold price, he said it is moving sideway and may be at $1,650-1,700 per ounce.
The jewellery business in India, according to him, has undergone a paradigm shift — from family concerns to organised retailing. The number of organised retail players has gone up and corporate culture has emerged in the sector.
E-commerce sales are increasing steadily, but confined mostly to lightweight ornaments such as earrings, pendants, and gold coins. Customers prefer offline sales when buying for occasions as they prefer the “touch-and-feel experience”, he said.
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