The founder who started the business with just four jhumkas often says in Telugu, Dabbulu Oorike Ravu — money does not come easy.
MUMBAI, Aug 19 (The CONNECT) – Lalithaa Jewellery Mart Limited struck gold in the primary market, with its ₹1,700-crore initial public offering (IPO) receiving overwhelming investor response and getting subscribed nearly 63 times on the final day of bidding on Wednesday.
The issue attracted bids for 3,95,21,39,534 equity shares against 6,27,61,403 shares on offer, translating into a subscription of 62.97 times, according to data available on the stock exchanges. The demand for the issue was close to ₹79,438 crore.
Qualified institutional buyers (QIBs) led the rush, subscribing to their portion 145.38 times. The non-institutional investor (NII) portion was subscribed 73.90 times, while the retail investor portion received bids equivalent to 11.81 times the shares reserved for the category.
The strong response caps a three-day bidding period for the jewellery retailer, whose shares are proposed to be listed on the BSE and NSE. The IPO opened on August 17 and closed on August 19.
For founder Kiran Kumar Jain, who started his jewellery business with just four jhumkas, the blockbuster IPO is a remarkable dream come true. Jain, who often says Dabbulu Oorike Ravu — money does not come easy — has seen his decades-long retail journey culminate in Lalithaa Jewellery’s spectacular stock-market debut. His offer for sale in the IPO has also fetched him around ₹500 crore, turning a modest beginning into a significant personal and business milestone.
The company had earlier raised ₹508.20 crore from anchor investors, allocating 2,52,83,581 equity shares at ₹201 apiece. The anchor book included global and domestic institutional names such as Goldman Sachs Bank Europe SE – ODI, Morgan Stanley India Investment Fund, Morgan Stanley Investment Funds Indian Equity Fund, Kotak Mahindra Life Insurance Company and Bajaj Life Insurance.
Several domestic mutual fund schemes also participated in the anchor allocation, including funds managed by ICICI Prudential, Bandhan, Samco and Bank of India. Of the total anchor allocation, 1,14,42,768 shares went to four domestic mutual funds through nine schemes.
Lalithaa Jewellery Mart operates under the Lalithaa brand and sells gold, silver and diamond jewellery, with a particular focus on regional preferences in southern India. The company has built a network of 61 stores across 51 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry, covering about 6.51 lakh sq ft as of March 31, 2026.
Its strategy is heavily tilted towards tier-II and tier-III markets. As many as 45 of its 61 stores were located in these markets in FY26, accounting for 60.25 per cent of revenue, according to the company, citing a CRISIL report.
The retailer has also positioned itself around a mass-market, value-conscious proposition, seeking to differentiate itself through competitive pricing, quality and an extensive product range. Its in-house manufacturing capabilities are a key part of this strategy.
The company operated 51 stores of more than 5,000 sq ft in FY26, including 39 stores in tier-II and tier-III cities. Its large-format and medium-format outlets allow it to display a wider selection of jewellery and are central to its expansion strategy.
The IPO comprises a fresh issue of up to ₹1,200 crore and an offer for sale of up to ₹500 crore by promoter M Kiran Kumar Jain. At the upper end of the price band of ₹190-201, the issue was valued at about ₹1,700 crore. Investors could bid for a minimum of 74 shares and in multiples thereafter.
The bulk of the fresh capital is earmarked for expansion. According to IPO documents, about ₹998.68 crore is proposed to fund inventory for 10 new stores, while ₹34.55 crore is earmarked for store fit-outs, equipment, IT hardware and software.
The issue also drew positive views from several brokerage houses. Adroit Financial, BP Wealth, GEPL Capital, SMIFS and Ventura Securities recommended subscribing to the IPO.
BP Wealth described Lalithaa’s model as a mass-market and value-conscious jewellery retail proposition, while pointing to its positioning as an accessible brand in southern India’s non-metro markets. At ₹201, the brokerage noted that the issue was valued at about 11.1 times FY26 diluted earnings per share of ₹18, compared with a listed peer average P/E of 29.7 times.
GEPL Capital similarly highlighted Lalithaa’s regional presence and product portfolio, putting the issue valuation at around 11 times FY26 earnings and recommending a subscription.
With institutional demand dominating the final-day rush, the IPO’s 63-times subscription marks a strong vote of confidence from investors in Lalithaa’s regional franchise and expansion plans. The next key milestones will be the basis of allotment, expected on August 20, followed by share credit and refunds on August 21. The shares are scheduled to make their market debut on August 24.
For promoter M Kiran Kumar Jain, the response offers an emphatic answer to the question that had accompanied the issue: can Lalithaa strike gold in the capital market? The final subscription numbers suggest investors have certainly placed a sizeable bet on it.
