Gold jewellery brand Joyalukkas files DRHP to raise Rs 2,300 cr via IPO
Joyalukkas was started in 2002 by Alukkas Varghese Joy in Kottayam, Kerala. In a span of over two decades, the company has created its presence in 68 cities across India with a two million customer base and plans to open eight more stores in the next two years after the IPO.
One of India's leading jewellery brands, Joyalukkas India has filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 2,300 crore through an initial public offering (IPO) with a fresh issue of shares, with no offer for sale component.
Headquartered in Kerala, the company’s 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 percent of the offer shall be available for allocation to qualified institutional buyers, not less than 15 percent of the offer shall be available for allocation to non-institutional bidders and not less than 35 percent of the offer shall be available for allocation to retail individual bidders.
Edelweiss Financial Services Limited, Haitong Securities India Private Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the book running lead managers to the issue.
Joyalukkas deals in the sale of gold jewellery and other jewellery products including diamonds, platinum, silver, and other precious stones. It has a presence in 68 cities across India with a focus on the southern states and operates through 85 stores including the large format stores. The company plans to open eight new showrooms over the next two years across Telengana, Maharashtra, Odisha and Karnataka.
Joyalukkas 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 percent from Rs 8,023.79 crore in FY 2020 to 8,066.29 crore in FY 2021, attributable to an increase in retail sales and other operating revenue following the end of COVID-19.
The size of the Indian jewellery retail sector is predicted to increase at a CAGR of 9 percent to reach US$ 91 billion (Rs 6.94 trillion) by FY 2025. However, the organised jewellery retail sector is expected to increase at a quicker rate, with a CAGR of roughly 14 percent from US$19 billion (Rs 1.45 trillion) in FY 2020 to US$36 billion (Rs 2.75 trillion) in FY 2025. According to a company-commissioned Technopack report, FY21 recorded the highest EBITDA per square foot and amongst the highest PAT amongst the top jewellery players in India.
The proceeds from its fresh issuance worth Rs 1,400 crores would be for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and Rs 463.90 crore for financing the opening of eight new showrooms besides general corporate purposes.
Founded by Promoter and Managing Director, Alukkas Varghese Joy in 2002 by opening a showroom in Kottayam, Kerala. The company deals in a range of over one lakh jewellery designs, across various price points caters to over two million customers in India.
To serve younger and tech-savvy clientele, the jeweller launched its website in March 2018 to build an online presence.
Edited by Affirunisa Kankudti