| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹190 to ₹201 | 74 | 17th Aug, 2026 – 19th Aug, 2026 | ₹1700 Cr |
Lalithaa Jewellery Mart Ltd
Lalithaa Jewellery Mart (LJM) operates a mass-market, value-conscious jewellery retail model, positioned as a trusted, accessible brand for customers seeking quality jewellery at affordable prices, differentiated from premium and metro-centric chains. The core business centres on gold, silver and diamond jewellery, with gold forming the dominant category at 92% of FY26 revenue, designed around traditional South Indian aesthetics and regional preferences. To build customer loyalty, the company operates structured jewellery purchase schemes, ‘Dhana Vandhanam’ and ‘Free-yo-Flexi’, under which customers commit to monthly instalments over a defined tenure, with the accumulated amount redeemable exclusively towards a jewellery purchase along with a discount on value addition charges; Dhana Vandhanam additionally credits a bonus to the corpus on completion of the full tenure. These schemes function as a purchase-linked savings mechanism rather than a conventional investment, with the benefit accruing only as a discount on jewellery bought from the company. LJM operates 61 stores across 51 cities in South India, with 23 stores in Andhra Pradesh and 20 in Tamil Nadu forming the core of the network, followed by 10 in Telangana, 7 in Karnataka and 1 in Puducherry. The company has also built meaningful penetration in Tier II and Tier III cities and towns, reflecting a deliberate strategy to extend its reach beyond the region’s largest urban centres. This footprint is backed by in-house manufacturing facilities in Chennai and Kanchipuram, spanning an aggregate 63,862 sq. ft. and supported by 816 exclusive karigars as of FY26, enabling greater control over design, quality and cost. Revenue and profitability have grown at a pace well ahead of the broader organised jewellery retail industry, aided by continued store additions, deeper market penetration and repeat-purchase behaviour from customer schemes, with FY26 revenue at Rs. 25,024 crores.
Objective of Lalithaa Jewellery Mart Ltd
The Offer comprises a fresh issue of Rs. 1,200 crores and an offer for sale of Rs. 500 crores. The company proposes to utilise the net proceeds from the fresh issue towards:
- Funding of expenditure towards setting up of 10 new stores in India;
- Capital expenditure for fit-outs in the nature of furniture and fixtures, equipment, IT hardware, software;
- Expenditure towards inventory costs for setting up of new stores and;
- General corporate purposes
Rationale To Lalithaa Jewellery Mart Ltd
Investment Rationale
Deep regional penetration backed by superior store level productivity.
LJM’s strong regional positioning and store level productivity provide a compelling foundation for growth. The company operates primarily in South India, which accounts for approximately 40% of India’s gems and jewellery demand, while its focus on value-conscious consumers and BIS-hallmarked jewellery enables it to compete effectively across organised and unorganised markets. Its deep penetration into Tier-II and Tier-III cities is a key differentiator, with 45 of 61 stores located in these markets and contributing 60.25% of FY26 revenue. The company also reported the highest operating revenue per store among key organised jewellery players, reaching Rs.410.2 crore in FY26, highlighting strong store productivity. Its large and medium-format stores provide a broad product assortment and support higher sales volumes, while the asset-light model, with 58 of 61 stores operating on a leave-and-license basis, provides flexibility to scale with relatively lower capital intensity. Going forward, the company also plans to expand its silverware offering, providing lower-value products that can partially mitigate exposure to gold price fluctuations, while exploring new branded jewellery lines and sub brands targeting specific customer segments. These initiatives, alongside its established regional franchise, provide multiple avenues for growth.
Backward integration and scheme led customer retention, supported by new growth.
LJM’S vertically integrated manufacturing model and strong customer engagement provide important competitive advantages. Lalithaa operates two in-house manufacturing facilities, supported by exclusive karigars, enabling greater control over production, wastage and value-addition costs. This backward integration allows the company to offer jewellery at competitive prices while protecting margins, which is particularly important given its focus on mass-market and value-conscious consumers. The manufacturing capabilities also provide greater flexibility in product design and inventory management, supporting the company’s large and medium-format store strategy. On the customer side, “Dhana Vandhanam” and “Free-yo-Flexi” purchase schemes help build a recurring customer base by encouraging customers to make regular monthly contributions towards future jewellery purchases. The schemes had over 473,000 active customers in FY26, while customer advances stood at Rs.504.3 crore, the highest among the key peers. This sizeable advance base provides greater visibility into potential future purchases and strengthens customer engagement and retention. The company is also looking to diversify its growth avenues through new branded jewellery lines and sub-brands aimed at specific customer segments, while increasing its focus on silverware, which can provide lower-ticket offerings and partially reduce dependence on gold jewellery. In addition, the Board has approved an investment of Rs.17 crore for a 91% stake in Lalithaa Jewellery in Malaysia, providing a potential platform for international expansion. Together, backward integration, customer loyalty initiatives, product diversification and overseas expansion create multiple avenues for sustained growth.
Valuation of Lalithaa Jewellery Mart Ltd
Lalithaa Jewellery Mart is a mass-market jewellery retailer focused primarily on gold, along with silver and diamond jewellery. Its “Dhana Vandhanam” and “Free-yo-Flexi” schemes support customer retention and repeat purchases through jewellery linked monthly savings programmes which has contributed sharply to the working capital of the company. The advances as a percent of revenue have also increased to 9% from FY24-26. LJM operates 61 stores across 51 cities, supported by in-house manufacturing facilities in Chennai and Kanchipuram. Tamil Nadu contributed 54% of FY26 revenue, followed by Andhra Pradesh at 18%, Telangana at 15%, Karnataka at 11% and Puducherry at 2%. The company has a strong Tier-II/III presence, with 45 of its 61 stores contributing around 60% of revenue. Revenue from operations, EBITDA and PAT grew at CAGRs of 22%, 57% and 68%, respectively, between FY24-26. EBITDA margin also improved from 4% to 7%, reflecting operating leverage and benefits from scale and backward integration. Gold jewellery remains the key revenue driver, accounting for 92% of FY26 revenue. The company aims to primarily expand by setting up 10 new stores, enabling it to extend its footprint beyond its existing South Indian markets. Increasing organised jewellery penetration, strong Tier-II/III traction, customer purchase schemes and in-house manufacturing provide a favourable growth outlook. At the upper price band of Rs. 201, the issue is valued at 11.1x FY26 diluted EPS of Rs.18.0, compared with the listed peer average P/E of 29.7x. The valuation represents a meaningful discount to peers, this combined with the company’s return ratios, regional franchise and store expansion opportunities we recommend a “SUBSCRIBE” rating for the issue.
What is the Lalithaa Jewellery Mart Ltd IPO?
The initial public offer (IPO) of Lalithaa Jewellery Mart Ltd an early investment opportunity in. A stock market investor can buy Lalithaa Jewellery Mart Ltd IPO shares by applying in IPO before All Lalithaa Jewellery Mart Ltd shares get listed at the stock exchanges. An investor could invest in Lalithaa Jewellery Mart Ltd for short term listing gain or a long term.
How to apply for the Lalithaa Jewellery Mart Ltd IPO through StoxBox?
To apply for the Lalithaa Jewellery Mart Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Lalithaa Jewellery Mart Ltd IPO open?
Lalithaa Jewellery Mart Ltd IPO is opening on 17th Aug 2026. Apply Now
What is the lot size of the Lalithaa Jewellery Mart Ltd IPO?
The Lot Size of Lalithaa Jewellery Mart Ltd 74 equity shares. Login to your account now.
When is the Lalithaa Jewellery Mart Ltd IPO allotment date?
The allotment Date for Lalithaa Jewellery Mart Ltd IPO is 20th Aug 2026. Login to your account now.
When is the Lalithaa Jewellery Mart Ltd IPO listing date?
The listing Date for Lalithaa Jewellery Mart Ltd is 24th Aug 2026. Login to your account now
What is the minimum investment required for the Lalithaa Jewellery Mart Ltd IPO?
In the Retail segment the minimum investment required is Rs 14,874 Login to your account now
What is the maximum investment allowed for Lalithaa Jewellery Mart Ltd IPO?
In the Retail segment the maximum investment requirement Rs 1,93,362 Login to your account now
What are the risks associated with investing in the Lalithaa Jewellery Mart Ltd IPO?
- High dependence on gold jewellery sales: Gold jewellery accounted for the overwhelming majority of revenue from operations across the last three fiscals (92% in FY26, 94% in FY25, and 93% in FY24), leaving the Company’s financial performance highly exposed to any disruption in gold procurement or demand for gold jewellery.
- Negative operating cash flows in certain periods: The Company reported negative cash flows from operating activities of Rs. 398 crores in FY26 and Rs. 18 crores in FY24, driven by lower customer enrolment in its jewellery schemes and higher settlement of trade payables, with no assurance that such negative cash flows will not recur in future periods.
- Reliance on customer advances under jewellery schemes: Advances received from customers under the Company’s jewellery purchase schemes have consistently exceeded 10% of revenue from operations, and any inability to appropriate these advances could adversely affect revenue, results of operations and future profitability.
When will the Lalithaa Jewellery Mart Ltd IPO shares be credited to my Demat account?
The Lalithaa Jewellery Mart Ltd will be credited to the account on allotment date which is 20th Aug 2026. Login to your account now
Where can I find the Lalithaa Jewellery Mart Ltd IPO prospectus?
The prospectus of Lalithaa Jewellery Mart Ltd IPO prospectus can be found on the website of SEBI, NSE and BSE
