Chennai-based Lalithaa Jewellery Mart has received final approval from the Securities and Exchange Board of India (SEBI) to raise Rs 1,700 crore through an Initial Public Offering (IPO). The IPO comprises a fresh issue of equity shares worth Rs 1,200 crore and an offer-for-sale (OFS) of shares worth Rs 500 crore by promoter Kiran Kumar.

The company had filed its draft red herring prospectus with SEBI on June 6.

Proceeds from the fresh issue, amounting to Rs 1,014.50 crore, will be used to fund the expansion of retail stores across India and for general corporate purposes.

Founded in 1985 with its first store in Chennai’s T Nagar, Lalithaa Jewellery has grown into a prominent player in South India’s organised jewellery retail space. As of December 31, 2024, the company operates 56 stores across Tamil Nadu (20) Andhra Pradesh (22) Karnataka (7) Telangana (6) and Puducherry (1) spanning over 6.09 lakh sq ft of retail space.The company also operates some of India’s largest jewellery stores, including a 1 lakh sq ft outlet in Vijayawada, and large-format stores in Somajiguda and Visakhapatnam.

According to a CRISIL report, the company recorded the highest operating revenue per store among major organised players between FY22 and FY24, and reported a CAGR of 43.62% in operating revenue during the same period. It is also the second-fastest growing regional jewellery brand in the country.

In FY24, Lalithaa Jewellery posted consolidated revenue of Rs 16,788.05 crore, a 26% jump from Rs 13,316.80 crore in FY23. Its net profit rose to Rs 359.8 crore in FY24 from Rs 238.3 crore a year earlier. For nine months ending December 31, 2024, they clocked a revenue of Rs 12,594.67 crore.