Kerala retail jewelry retailer Joyalukkas India has submitted a draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) to raise Rs 2,300 crore in fresh capital through an initial public offering (IPO)
The company plans to use Rs. Rs 1,400 crore of IPO proceeds to reduce debt and around Rs 464 crore to expand operations, which includes the opening of eight new showrooms. Over the next two years, Joyalukkas plans to open new stores in Telengana, Maharashtra, Odisha and Karnataka.
At present, the company generates more than 90 percent of its revenue from the southern states.
Joyalukkas was founded by Alukkas Varghese Joy, who has more than 33 years of experience in the jewelry industry. The company started its operations in 2002 with the opening of a showroom in Kottayam, Kerala. It has since expanded its network to 85 showrooms under the Joyalukkas brand in 68 cities in India. The company also operates several large department stores with an area of more than 8000 square feet.
Its jewelry is divided into four categories: gold jewelry, diamond jewelry, silver jewelry, platinum and other precious metals, and stone jewelry.
In the fiscal year 21, Goyalukkas reported a net profit of Rs 472 crore on revenue of Rs 8,066 crore.
Dividend for the six months period ending September 2021, its profit was Rs 269 crore on revenue of Rs 4,012 crore. As of September 30, 2021, Goyalukkas’ net debt to equity ratio was 0.77.
The company enjoys the highest operating profit per square foot among the major jewelers in the country.
Currently, among the top jewelers listed in the country are Titan (Tanishk) and Kalyan Jewelers.
Edelweiss Financial, Haitong Securities, Motilal Oswal Investment Advisors and SBI Capital Markets Limited are the lead book managers responsible for the issuance.