2 weeks ago
Lalithaa Jewellery IPO Subscribed 63x as GMP Signals Premium
Lalithaa Jewellery Mart asked investors to buy shares in its IPO.
The IPO closed on August 19 after three days of bidding.
Investors wanted many more shares than the company offered, so the issue was subscribed nearly 63 times.
Large institutional investors showed the strongest interest, applying for more than 145 times their reserved shares.
Other large investors subscribed about 74 times their allocation.
Individual investors subscribed nearly 12 times their quota.
The company plans to use ₹1,033 crore to open 10 new stores.
Shares were reportedly trading at a premium in unofficial grey markets, but this does not guarantee a profit when trading begins.
Lalithaa Jewellery Mart’s ₹1,700 crore IPO was subscribed 62.97 times by its August 19 closing.
The issue received bids for about 395.22 crore shares, valued at ₹79,447.84 crore, and more than 45 lakh applications.
Qualified Institutional Buyers led demand at 145.38 times, followed by non-institutional investors at about 73.90 times.
Retail investors subscribed 11.81 times their allocation, while the employee portion was subscribed 8.55 times.
Grey-market trading indicated a possible ₹252 listing price, but the articles cautioned that GMP does not guarantee gains.
- Who
- Lalithaa Jewellery Mart Limited and investors in the QIB, NII, retail and employee categories.
- What
- The company’s ₹1,700 crore IPO closed with an overall subscription of 62.97 times.
- Where
- The Chennai-based retailer’s shares were expected to list on the NSE and BSE; the company operates stores across five southern states.
- When
- Bidding ran from August 17 to August 19, 2026; allotment was expected on August 20 and listing on August 24.
- Why
- The company plans to use ₹1,033 crore from the fresh issue to fund 10 new store openings.
Strong Investor Demand
Valuation and Margin Caution
IPO appeal
Strong Investor Demand
The issue was subscribed 62.97 times overall, with QIBs at 145.38 times, NIIs at about 73.90 times and retail investors at 11.81 times. Grey-market trading indicated a possible 25% premium.
Valuation and Margin Caution
SBI Securities assigned a Neutral rating and said the valuation at the upper price band was broadly in line with listed peers.
Reported growth
Strong Investor Demand
Lalithaa Jewellery Mart reported approximately 22% revenue and 68% profit compound annual growth rates over FY24–26.
Valuation and Margin Caution
SBI Securities said this growth was substantially aided by an approximately 2.3-times rise in gold prices during the period.
Future margins
Strong Investor Demand
The planned ₹1,033 crore investment in 10 new stores provides funding for further expansion.
Valuation and Margin Caution
The brokerage cautioned that the company’s lack of a hedging policy could leave margins vulnerable to moderation if gold prices stabilise.
Key facts
- IPO size
- ₹1,700 crore
- Price band
- ₹190–201 per share
- Overall subscription
- 62.97 times
- QIB subscription
- 145.38 times
- Retail subscription
- 11.81 times
- Anchor funding
- ₹508 crore raised before the public issue
- Grey-market indication
- A 25% premium, implying an estimated ₹252 listing price; GMP does not guarantee gains
- Expansion plan
- ₹1,033 crore of fresh-issue proceeds planned for 10 new stores
Sources
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