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Kochi-based jewellery chain Joyalukkas India plans to tap the capital market in the next two-three months.
The company, which has already obtained SEBI approval for its initial public offering (IPO) sized between Rs 600-650 crore, has appointed Enam Securities and Citigroup Global Markets as advisors.
Post IPO, the promoters' stake in the company would come down to 73.5 per cent from the current 100 per cent.
The IPO proceeds will be used to fund its retail expansion and repay existing debts.
“We plan to raise up to Rs 600-650 crore. We have got SEBI nod to come out with an IPO of 1.8 crore equity shares,” Mr Alukkas Varghese Joy, Managing Director, Joyalukkas, told Business Line .
Utilisation of funds
The Joyalukkas Chief Financial Officer, Mr Nandakumar T., said “the company will utilise about Rs 420 crore for network expansion, another Rs 120 crore for debt reduction.”
Currently, the gold and diamond retail chain has 22 retail stores with a large store presence in Kerala. “We are looking to set up 14 outlets by 2013.
“The proceeds will help in scaling up our retail footprint and repay existing debts.”
Mr Joy said that company will double its retail space from the present 3.12 lakh square feet by 2013. Apart from jewellery, it sells textiles, apparels and accessories located through its wedding centres across Kerala.
The company has stores in the UK, the US and the UAE as well.
Recently, several companies like C Mahendra Exports, Shree Ganesh Jewellery House, Thangamayil Jewellery and Goenka Diamond & Jewels have tapped the market for funds.
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