Kerala-based jewellery retail chain will use Rs 463.9 crore for financing the opening of eight new showrooms.
Joyalukkas India has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI to launch Rs 2,300-crore IPO. The net proceeds of the issue will be utilised for repayment or prepayment, in full or part, of certain borrowings availed by the company of worth Rs 1,400 crore. Kerala-based jewellery retail chain will use Rs 463.9 crore for financing the opening of eight new showrooms. Upon successful listing the bourses, Joyalukkas India will join the likes of Titan Company, and Kalyan Jewellers India.
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.
Joyalukkas diamond jewellery is certified by Forevermark, IGI, GIA and DHC. They have developed a number of sub-brands that include Pride, Eleganza, Veda, Ratna, Zenina, Apurva, Masaaki Pearls and Li’l Joy Kids Jewellery. Global jewellery market, estimated at $320 billion, is a significant industry in terms of contribution to the world economy. Diamond and gold are two precious metals contributing more than 50 per cent of the global jewellery market. USA, China, and India are the top three markets in the global jewellery market with different pecking order in diamond and gold jewellery market. India in addition to being a big market also plays a significant role in the supply chain of both gold and diamond jewellery market. Global jewellery market is projected to reach $350 billion by 2025, the company said in its DRHP.
In India, gold serves a dual purpose of ornamentation and investment. Selling gold in the form of jewellery, bars and coins does not require a push like other lifestyle retail categories such as footwear and apparel. There is no inventory obsolescence risk in jewellery retailing as products can be recycled to make new ones.