Lalithaa Jewellery Mart Ltd IPO
Status: Closed
Overview
IPO date
17 Aug 2026 to 19 Aug 2026
Face value
₹ 5 per share
Price
₹ 190 to ₹201 per share
Issue Size
84,608,276 shares
(aggregating up to ₹ 1700 Cr)
(aggregating up to ₹ 1700 Cr)
Allotment Date
20 Aug 2026
Listing at
NSE
Issue type
Book Building
Sector
Diamond, Gems and Jewellery
Unlock Stock of the Month
T&C*
Strengths vs Risks of Lalithaa Jewellery Mart Ltd
Know the pros & cons
Strengths
- Strong regional presence with deep penetration in high-growth South Indian markets evidenced by operating revenue growth between Fiscal 2024 to Fiscal 2026.
- Brand catering to the mass and value-conscious segment with own manufacturing.
- Brand pull in Tier II and Tier III cities in southern India with focus on quality, craftsmanship and original designs.
- Large Format Stores and Medium Format Stores driving scale.
- Robust customer base owing to diverse range of jewellery schemes.
- Asset light retail business model with backward integration, efficient inventory management and quality control processes in place.
Risks
- The company's revenue has been significantly dependent on sale of gold jewellery, which accounted for 92.33%, 94.58% and 93.96% of its revenue from operations, for the Financial Years 2026, 2025 and 2024, respectively. Any factors adversely affecting the procurement of gold or the company's sales of gold jewellery may negatively impact its business, financial condition, results of operations and prospects.
- The company has experienced negative cash flows from operating activities of Rs. 3,977.62 million and Rs. 180.02 million in Fiscal 2026 and in Fiscal 2024 respectively, due to lower customer enrolment towards the Company's jewellery schemes and increased settlement of trade payables and cannot assure you that the company will not experience negative cash flows in future periods. Negative cash flows may adversely affect its financial condition, results of operations and prospects.
- The company receives advances from its customers under various schemes introduced by it. The amounts received in the schemes amount to more than 10% of the company's revenue from operations for the respective financial periods. Inability to appropriate such advances received from customers under jewellery purchase schemes may adversely impact its revenues and results of operations and future profitability.
- The Company has a total outstanding borrowings of Rs. 12,381.00 million as of June 30, 2026. Further, its financing agreements contain covenants that limit the company's flexibility in operating its business. The company's inability to meet its obligations, including financial and other covenants under the company's debt financing arrangements could adversely affect its business, credit rating, results of operations and financial condition.
- The Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and Senior Management are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have an adverse effect on its business, financial condition, cash flows and results of operations.
- If the company is unable to protect its designs or continue to develop innovative, fashionable and popular designs, demand for the company's jewellery may decrease, adversely affecting its revenues and financial condition.
- The company has entered into transactions with related parties including remuneration of its Directors, Promoters and the company's Key Managerial Personnel and payment of brand ambassador fees Rs. 502.76 million in Fiscal 2024 to its Promoter, M Kiran Kumar Jain. These or any future related party transactions may potentially involve conflict of interest and there can be no assurance that the company could not have achieved better terms, has such arrangements been entered into with unrelated parties.
- The company has contingent liabilities representing approximately 1.85% of its net worth as at March 31, 2026, and the company's financial condition could be adversely affected if any of these contingent liabilities materialise.
- The company's Promoters, Subsidiaries, Directors and Key Managerial Personnel may enter into ventures in the same line of business that may lead to real or potential conflicts of interest with its business which in turn may materially adversely impact the company's business, financial condition, results of operations and cash flows.
- The company is dependent on its top three suppliers of raw materials who have contributed 58.03%, 67.20% and 66.98% in Fiscals 2026, 2025 and 2024, respectively of its total cost of raw materials and the loss of any of these suppliers or interruptions in the supply of raw materials could adversely affect the company's business, results of operations and financial condition.
- The company's funding requirements and the proposed deployment of Net Proceeds has not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
- The company's income and sales is subject to seasonal fluctuations and lower income in the peak season may have a disproportionate effect on its results of operations.
- During the financial years ended 2026, 2025 and 2024, amongst the employees, the Company has an attrition rate of 30.90%, 27.84% and 35.67% respectively. If its were to lose the services of members of the company's senior management team or key managerial personnel, its business and prospects may be adversely affected. Moreover, the company's failure to attract, motivate and retain sufficient skilled designers and sales personnel may adversely affect the company's business, results of operations, financial condition and prospects.
- The Company requires significant amounts of capital for business operations. Further, its may need to obtain additional financing in the normal course of business from time to time as the company expand its operations. The company may not be successful in obtaining additional funds in a timely manner and/or on favourable terms including rate of interest, primary security cover, collateral security, terms of repayment, or at all. The company's inability to meet its capital requirements, on commercially acceptable terms, may have an adverse impact on the company's business, financial condition and results of operations.
- The company is unable to trace some of its historical records including forms filed with the RoC and there have been certain non-compliances, under Companies Act in relation to its filings with the RoC and corporate records. The company cannot assure you that no legal proceedings or regulatory actions will be initiated against the company in the future in relation to these matters or there will be any other non-compliances in the future, which may impact its financial condition and reputation.
- The company's Registered and Corporate Office, 58 out of 61 stores, as of March 31, 2026 and Manufacturing Facilities are on leave and license basis. If the company fails to renew these leases on competitive terms or if the company is unable to manage its lease rental costs, the company's results of operations would be materially and adversely affected.
- There may be a deviation in the cost of opening of new stores and setting up such new stores prior to filing this Red Herring Prospectus vis-a-vis the capital expenditure proposed to be funded from the Net Proceeds of the Offer. Any significant deviation in such costs may impact the return on investment and the strategy of the Company.
- The company may not be successful in implementing its brand building, marketing and advertising initiatives for its brand. Any fall in the company's brand's reputation and market perception, may adversely affect its business, results of operations and prospects.
- In the past, the company has been subject to a `search and seizure' operation by the income-tax department, which has resulted in taxation proceedings being initiated against the company. Any such proceeding in the future might have an adverse effect on its business, financial condition and results of operations.
- Dilip Chhabria Design Private Limited ("DCDPL"), an entity in which Promoter's shareholding is more than 20% of issued and paid-up equity share capital is deemed to be a part of the company's Promoter Group and is currently under the liquidation process. The Company is unable to access to any information pertaining to accounting or secretarial records of DCDPL and hence is not in a position to provide confirmations with respect to DCDPL or any body corporate in which DCDPL may holds 20 percent or more, as required under the SEBI ICDR Regulations. Its cannot assure you that complete disclosures relating to DCDPL and related entities are included in this Red Herring Prospectus.
- The company proposes to use the proceeds of the Issue towards opening of new stores. While the company has identified the cities for such New Stores, the process of shortlisting and finalising specific locations within these cities is currently under process. In case the company is unable to open the stores in a timely manner as mentioned in the chapter "Objects of the Offer", its may fall short of the revenue targets of the Company and this would have an adverse effect on the company's business, financial condition, results of operations and growth prospects.
- The company's Promoters and a member of its Promoter Group has extended personal guarantees for certain of its borrowings, which if called upon, could adversely impact their holding in the Company.
- The company operates 61 stores in 51 cities across states of Andhra Pradesh, Karnataka, Tamil Nadu, Telangana and Union Territory of Puducherry. As of Fiscal 2026, the company has 23 stores in Andhra Pradesh, 20 stores in Tamil Nadu, 7 in Karnataka, 10 in Telangana and 1 in Puducherry. Due to the geographic concentration of all (100%) the company's stores in the southern regions of India, its results of operations and financial condition is subject to fluctuations in regional economic conditions.
- The company faces significant competition in the Indian jewellery market. Its market share in the southern states of India was 4.97% in Fiscal 2026, 5.13% in Fiscal 2025, and 6.46% in Fiscal 2024. The company's market share may get adversely affected due to change in market trends, pricing and customer preferences, and its risk losing substantial portion of the company's customers which will adversely affect its business, financial condition, results of operations and prospects.
- The company's business operations involve retail sales and its maintain large amounts of inventory at the Manufacturing Facilities, with the company's Karigars and at its stores at all times. Incidents such as fraud, theft, employee negligence or similar other incidents may adversely affect the company's results of operations and financial condition.
- Transfers of Equity Shares by one of the company's Promoters, Kiran Kumar Jain to certain persons, at a price that may be lower than the Offer Price, prior to the Offer, may affect investor perception or invite regulatory scrutiny. Any such negative perception or regulatory scrutiny could negatively impact the trading price of its Equity Shares after the listing.
- The company's inventories as a percentage of its revenue from operations as of Fiscals 2026, 2025 and 2024 were 39.23%, 34.76% and 25.57%, respectively. The company's results of operations are dependent on its ability to effectively manage the company's inventory. Its inability to accurately forecast demand or effectively manage the company's inventory may have an adverse effect on its business, financial condition, results of operations and cash flows.
- If the company is unable to secure or protect its trademarks, or if they are infringed or misappropriated, the company's brand value and revenue from products sold under those trademarks may decline, which could materially impact its business.
- The company has had instances of delays in payments of statutory dues by the Company. Any delays in payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have an adverse impact on its financial condition and cash flows.
- Past sales in the company's stores may not be comparable to and indicative of future sales from its stores and there can be no assurance that the opening of proposed new stores will result in increased sales or profitability.
- In Fiscal 2026, the company operated its Manufacturing Facilities with 672 Karigars employed by the Company and 144 Karigars employed by Asita Jewellery Manufacturing Private Limited ("Asita") for manufacturing of its products. These Karigars who are on the rolls of the Company and Asita, manufactured 79.11%, 80.66% and 79.78% of its total products available for sale for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Further, the company has entered into short term agreements with 296 Karigars (as of March 31, 2026), on a non-exclusive basis, for manufacture and supply of jewellery. The Company is dependent on these Karigars for manufacturing its products and any disruptions at the company's Manufacturing Facilities, or loss of these Karigars or failures of these Karigars to adhere to the relevant quality standards may have a negative effect on the company's reputation, business and financial condition.
- Certain of the company's Directors, its Promoter, members of the company's Promoter Group and Key Managerial Personnel may have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.
- The company requires certain approvals, permits and licenses in the ordinary course of business, and any failures or delay to obtain or renew them or to comply with their conditions in the future may adversely affect the company's operations.
- The company has expanded its stores footprint from 53 stores in Fiscal 2024, to 61 stores in Fiscal 2026 in 51 cities across the States of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and the Union Territory of Puducherry. If the company is unable to effectively manage or expand its retail network and operations or pursue the company's growth strategies, its may not achieve the expected level of profitability which may adversely affect the company's business prospects, financial condition and results of operations.
- Government measures and public appeals discouraging gold purchases may adversely impact demand for gold and the company's business.
- The company's ability to attract customers is dependent on the success and visibility of its stores. The company's failure to attract optimal volume of customers to its stores could materially and adversely affect the company's business, financial condition and results of operations.
- One of the company's Promoter Group entities, namely A. K. Exports operates in the same line of business as that of the Company and as a result they deal with certain common vendors in their ordinary course of business.
- The company's ability to access capital depends on its credit ratings. Non availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business and results of operations.
- The company's trade receivables has increased from Rs.585.94 million in Fiscal 2024 to Rs.1,164.50 million in Fiscal 2025 and to Rs. 2,146.92 million in Fiscal 2026, resulting in 1.99 times and 1.84 times increase respectively in the trade receivables which could result in the reduction of the company's profits and affect its cash flows.
- Any failures or disruption or change of the company's information technology systems may adversely impact its business and operations.
- Timely procurement of gold, the company's key raw material, as well as the quality and the price at which they are procured, play an important role in the successful operation of its business. The prices and availability of gold depends on factors beyond the company's control, including general economic conditions, competition, production levels and regulatory factors such as import duties. The non-availability or volatility in the cost of gold and absence of hedging facilities may have an adverse effect on its business, results of operations, financial condition and prospects.
- The company's insurance coverage may not be sufficient or adequate to cover its losses or liabilities. In Fiscal 2026, the company has an insurance coverage of 81.04% as a percentage of total assets. Further, the company has obtained some insurance in the name of its Promoter, Kiran Kumar Jain. If the company suffer a large uninsured loss or if its suffer an insured loss that significantly exceeds the company's insurance coverage, its financial condition and results of operations may be adversely affected.
- The company's inability to detect money-laundering and other illegal activities such as system failures or security breach fully and on a timely basis may expose it to additional liability and adversely affect its business and reputation.
- If the company fails to comply with laws relating to privacy and data protection, its may be subject to significant liability, negative publicity, an erosion of trust and increased regulation, which could materially and adversely affect its business, results of operations and financial condition.
- The company's "Other Current Liabilities" has increased from Rs. 31,982.04 million as at March 31, 2025 to Rs. 51,238.31 million as at March 31, 2026. This may have an adverse effect on its liquidity position and working capital requirements.
- The company has acquired its Subsidiaries; Asita Jewellery Manufacturing Private Limited and Centigrade Apparels Private Limited pursuant to the Asita SPA and the Centigrade SPA and may continue to engage in strategic acquisitions, investments and alliances that fit well with its strategic business objectives and growth strategies. If the company is unable to realize the anticipated benefits of acquisitions or investments or alliances or successfully integrate them with its business, the company's business, results of operations and financial condition could be adversely affected.
- Any labour disputes, strikes or work stoppages may lead to lost production and/or increased costs, which may adversely affect the company's business, results of operations and financial condition.
- The company accepts payments using a variety of methods, including credit and debit cards, digital wallets, UPI, money transfers, equated monthly payment and cash payments. The company is subject to payment-related risks, including risks associated with cash payments and payment processing risks and any material regulatory changes in the payment processing services.
- Certain sections of this Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by it exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company is exposed to consumer complaints pertaining to its products and the company's failure to address these complaints due to inefficiencies in redressal mechanism could lead to regulatory issues or litigations. Further any negative publicity or media coverage can lead to the dilution of its brand and goodwill, which may adversely affect the company's business, results of operations, financial condition, and cash flows.
- The company's business is working capital intensive, primarily due to the requirement to maintain high levels of gold and diamond inventory. Any inability to finance or efficiently manage its working capital requirements may adversely affect the company's business, financial condition, and results of operations.
- While the company has online presence to maximize customer reach, its focus primarily on a brick-and-mortar model to establish the company's physical presence and generate revenue in India's southern states. Therefore, the company does not generates any revenue from any online platforms which may expose it to competitive disadvantages.
- The industry in which the company operates is subject to scrutiny in relation to the Environmental, Social and Governance (ESG) practices, particularly with respect to the ethical sourcing of gold, diamonds and other precious materials. The company is currently not required to have any ESG framework in place covering any aspects of its supply chain. As ESG considerations become increasingly material to investment and customer decisions, any actual or perceived non-compliance may adversely affect the company's business and operations.
- The company is exposed to consumer complaints pertaining to its products and the company's failure to address these complaints in a timely manner could lead to litigation, which may adversely affect its business, results of operations, financial condition, and cash flows.
- The company's business is dependent on its brand reputation and goodwill. Any negative publicity, which may lead to the dilution of the company's brand and goodwill, could adversely affect its results of operations, financial conditions, cash flows and reduce the company's profitability.
- Majority of the company's Directors does not have any prior experience of being a director in any other listed company in India and lack of such adequate experience to address complexities associated with listed companies, could have an adverse impact on the company's business and operations.
- The company generates its sales directly from physical sales at the company's stores and any adverse developments affecting its operations in these regions, including closure of such stores, could have an adverse impact on the company's revenue and results of operations.
- The Company has prepared financial statements under Ind AS. Significant differences exist between Ind AS and other accounting principles, such as Indian GAAP, IFRS and U.S. GAAP.
Lalithaa Jewellery Mart Ltd Peer Comparison
Understand the company’s industry standing
Lalithaa Jewellery Mart Limited
Kalyan Jewellers India Limited
Manoj Vaibhav Gems N Jewellers Limited
Face Value
5
10
10
Standalone / Consolidated
Consolidated
Consolidated
standalone
Total Income Rs. Cr.
---
---
---
EPS-Basis
20.2
13.08
23.54
EPS-Diluted
20.2
13.05
23.54
NAV Per Share
58.6
61.09
170.6
P/E-Basic EPS
---
46.85
7.12
P/E-Diluted EPS
---
---
---
RONW(%)
39.9
24.63
14.82
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 17 Aug 2026 & closes on 19 Aug 2026.
Lalitha Jewellery Mart Limited was incorporated under the name of 'Lalitha Jewellery Mart Private Limited', as a private limited company dated November 26, 1985. Subsequently, the name of the Company was changed from 'Lalitha Jewellery Mart Private Limited' to 'Lalithaa Jewellery Mart Private Limited' pursuant to a fresh certificate of incorporation dated November 4, 2013, issued by the Registrar of Companies, Tamil Nadu & Andaman at Chennai. Subsequently, Company was converted from a private limited company into a public company and the name of Company was changed to 'Lalithaa Jewellery Mart Limited' and a fresh certificate of incorporation dated January 5, 2024 was issued by the RoC.
The Company is engaged in the business of manufacturing, sale and trading of gold jewellery, diamond studded jewellery, platinum, silver jewellery and articles. The Company opened its first store in 1985 in T. Nagar locality of Chennai which is a hub for a silk and jewellery retail outlets. The Promoter, M. Kiran Kumar Jain had acquired the Company in year 2003. The Company then, set up their second store at Madurai, being the first store outside the city of Chennai in 2007.
In 2013, Company opened the first store outside the state of Tamil Nadu in Pondicherry. In 2016, it set up a store in Hyderabad and has taken the count of the stores to a network of 50 in 2024. Further, the Company has opened a new factory in Kancheepuram district of Tamil Nadu and acquired Asita Jewellery Manufacturing Pvt Ltd in 2024 following the acquisition of Centigrade Apparels Private Limited. The Company has started operations at the manufacturing unit in Thirumudivakkam district of Chennai in December, 2024.
The Company came up with IPO aggregating the issuance of 84,608,276 equity shares of Rs 5 each and raised Rs 1700 crore, which comprises a fresh issue of 59,732,655 equity shares amounting to Rs 1200 crore and the offer for sale of 24,875,621 equity shares amounting to Rs 500 crore on 19 August, 2026.
Lalithaa Jewellery Mart Ltd IPO will close on 19 Aug 2026.
- Strong regional presence with deep penetration in high-growth South Indian markets evidenced by operating revenue growth between Fiscal 2024 to Fiscal 2026.
- Brand catering to the mass and value-conscious segment with own manufacturing.
- Brand pull in Tier II and Tier III cities in southern India with focus on quality, craftsmanship and original designs.
- Large Format Stores and Medium Format Stores driving scale.
- Robust customer base owing to diverse range of jewellery schemes.
- Asset light retail business model with backward integration, efficient inventory management and quality control processes in place.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Kiran Kumar Jain | 488573316 | 97.72 | 463697695 | 82.85 |
| 2 | Hemaa Kiran Kumar Jain | 840 | --- | 840 | --- |
| 3 | Lalitha Castle Private Limited | 420 | --- | 420 | --- |
- The company's revenue has been significantly dependent on sale of gold jewellery, which accounted for 92.33%, 94.58% and 93.96% of its revenue from operations, for the Financial Years 2026, 2025 and 2024, respectively. Any factors adversely affecting the procurement of gold or the company's sales of gold jewellery may negatively impact its business, financial condition, results of operations and prospects.
- The company has experienced negative cash flows from operating activities of Rs. 3,977.62 million and Rs. 180.02 million in Fiscal 2026 and in Fiscal 2024 respectively, due to lower customer enrolment towards the Company's jewellery schemes and increased settlement of trade payables and cannot assure you that the company will not experience negative cash flows in future periods. Negative cash flows may adversely affect its financial condition, results of operations and prospects.
- The company receives advances from its customers under various schemes introduced by it. The amounts received in the schemes amount to more than 10% of the company's revenue from operations for the respective financial periods. Inability to appropriate such advances received from customers under jewellery purchase schemes may adversely impact its revenues and results of operations and future profitability.
- The Company has a total outstanding borrowings of Rs. 12,381.00 million as of June 30, 2026. Further, its financing agreements contain covenants that limit the company's flexibility in operating its business. The company's inability to meet its obligations, including financial and other covenants under the company's debt financing arrangements could adversely affect its business, credit rating, results of operations and financial condition.
- The Company, Subsidiaries, Promoters, Directors, Key Managerial Personnel and Senior Management are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have an adverse effect on its business, financial condition, cash flows and results of operations.
- If the company is unable to protect its designs or continue to develop innovative, fashionable and popular designs, demand for the company's jewellery may decrease, adversely affecting its revenues and financial condition.
- The company has entered into transactions with related parties including remuneration of its Directors, Promoters and the company's Key Managerial Personnel and payment of brand ambassador fees Rs. 502.76 million in Fiscal 2024 to its Promoter, M Kiran Kumar Jain. These or any future related party transactions may potentially involve conflict of interest and there can be no assurance that the company could not have achieved better terms, has such arrangements been entered into with unrelated parties.
- The company has contingent liabilities representing approximately 1.85% of its net worth as at March 31, 2026, and the company's financial condition could be adversely affected if any of these contingent liabilities materialise.
- The company's Promoters, Subsidiaries, Directors and Key Managerial Personnel may enter into ventures in the same line of business that may lead to real or potential conflicts of interest with its business which in turn may materially adversely impact the company's business, financial condition, results of operations and cash flows.
- The company is dependent on its top three suppliers of raw materials who have contributed 58.03%, 67.20% and 66.98% in Fiscals 2026, 2025 and 2024, respectively of its total cost of raw materials and the loss of any of these suppliers or interruptions in the supply of raw materials could adversely affect the company's business, results of operations and financial condition.
- The company's funding requirements and the proposed deployment of Net Proceeds has not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
- The company's income and sales is subject to seasonal fluctuations and lower income in the peak season may have a disproportionate effect on its results of operations.
- During the financial years ended 2026, 2025 and 2024, amongst the employees, the Company has an attrition rate of 30.90%, 27.84% and 35.67% respectively. If its were to lose the services of members of the company's senior management team or key managerial personnel, its business and prospects may be adversely affected. Moreover, the company's failure to attract, motivate and retain sufficient skilled designers and sales personnel may adversely affect the company's business, results of operations, financial condition and prospects.
- The Company requires significant amounts of capital for business operations. Further, its may need to obtain additional financing in the normal course of business from time to time as the company expand its operations. The company may not be successful in obtaining additional funds in a timely manner and/or on favourable terms including rate of interest, primary security cover, collateral security, terms of repayment, or at all. The company's inability to meet its capital requirements, on commercially acceptable terms, may have an adverse impact on the company's business, financial condition and results of operations.
- The company is unable to trace some of its historical records including forms filed with the RoC and there have been certain non-compliances, under Companies Act in relation to its filings with the RoC and corporate records. The company cannot assure you that no legal proceedings or regulatory actions will be initiated against the company in the future in relation to these matters or there will be any other non-compliances in the future, which may impact its financial condition and reputation.
- The company's Registered and Corporate Office, 58 out of 61 stores, as of March 31, 2026 and Manufacturing Facilities are on leave and license basis. If the company fails to renew these leases on competitive terms or if the company is unable to manage its lease rental costs, the company's results of operations would be materially and adversely affected.
- There may be a deviation in the cost of opening of new stores and setting up such new stores prior to filing this Red Herring Prospectus vis-a-vis the capital expenditure proposed to be funded from the Net Proceeds of the Offer. Any significant deviation in such costs may impact the return on investment and the strategy of the Company.
- The company may not be successful in implementing its brand building, marketing and advertising initiatives for its brand. Any fall in the company's brand's reputation and market perception, may adversely affect its business, results of operations and prospects.
- In the past, the company has been subject to a `search and seizure' operation by the income-tax department, which has resulted in taxation proceedings being initiated against the company. Any such proceeding in the future might have an adverse effect on its business, financial condition and results of operations.
- Dilip Chhabria Design Private Limited ("DCDPL"), an entity in which Promoter's shareholding is more than 20% of issued and paid-up equity share capital is deemed to be a part of the company's Promoter Group and is currently under the liquidation process. The Company is unable to access to any information pertaining to accounting or secretarial records of DCDPL and hence is not in a position to provide confirmations with respect to DCDPL or any body corporate in which DCDPL may holds 20 percent or more, as required under the SEBI ICDR Regulations. Its cannot assure you that complete disclosures relating to DCDPL and related entities are included in this Red Herring Prospectus.
- The company proposes to use the proceeds of the Issue towards opening of new stores. While the company has identified the cities for such New Stores, the process of shortlisting and finalising specific locations within these cities is currently under process. In case the company is unable to open the stores in a timely manner as mentioned in the chapter "Objects of the Offer", its may fall short of the revenue targets of the Company and this would have an adverse effect on the company's business, financial condition, results of operations and growth prospects.
- The company's Promoters and a member of its Promoter Group has extended personal guarantees for certain of its borrowings, which if called upon, could adversely impact their holding in the Company.
- The company operates 61 stores in 51 cities across states of Andhra Pradesh, Karnataka, Tamil Nadu, Telangana and Union Territory of Puducherry. As of Fiscal 2026, the company has 23 stores in Andhra Pradesh, 20 stores in Tamil Nadu, 7 in Karnataka, 10 in Telangana and 1 in Puducherry. Due to the geographic concentration of all (100%) the company's stores in the southern regions of India, its results of operations and financial condition is subject to fluctuations in regional economic conditions.
- The company faces significant competition in the Indian jewellery market. Its market share in the southern states of India was 4.97% in Fiscal 2026, 5.13% in Fiscal 2025, and 6.46% in Fiscal 2024. The company's market share may get adversely affected due to change in market trends, pricing and customer preferences, and its risk losing substantial portion of the company's customers which will adversely affect its business, financial condition, results of operations and prospects.
- The company's business operations involve retail sales and its maintain large amounts of inventory at the Manufacturing Facilities, with the company's Karigars and at its stores at all times. Incidents such as fraud, theft, employee negligence or similar other incidents may adversely affect the company's results of operations and financial condition.
- Transfers of Equity Shares by one of the company's Promoters, Kiran Kumar Jain to certain persons, at a price that may be lower than the Offer Price, prior to the Offer, may affect investor perception or invite regulatory scrutiny. Any such negative perception or regulatory scrutiny could negatively impact the trading price of its Equity Shares after the listing.
- The company's inventories as a percentage of its revenue from operations as of Fiscals 2026, 2025 and 2024 were 39.23%, 34.76% and 25.57%, respectively. The company's results of operations are dependent on its ability to effectively manage the company's inventory. Its inability to accurately forecast demand or effectively manage the company's inventory may have an adverse effect on its business, financial condition, results of operations and cash flows.
- If the company is unable to secure or protect its trademarks, or if they are infringed or misappropriated, the company's brand value and revenue from products sold under those trademarks may decline, which could materially impact its business.
- The company has had instances of delays in payments of statutory dues by the Company. Any delays in payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have an adverse impact on its financial condition and cash flows.
- Past sales in the company's stores may not be comparable to and indicative of future sales from its stores and there can be no assurance that the opening of proposed new stores will result in increased sales or profitability.
- In Fiscal 2026, the company operated its Manufacturing Facilities with 672 Karigars employed by the Company and 144 Karigars employed by Asita Jewellery Manufacturing Private Limited ("Asita") for manufacturing of its products. These Karigars who are on the rolls of the Company and Asita, manufactured 79.11%, 80.66% and 79.78% of its total products available for sale for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Further, the company has entered into short term agreements with 296 Karigars (as of March 31, 2026), on a non-exclusive basis, for manufacture and supply of jewellery. The Company is dependent on these Karigars for manufacturing its products and any disruptions at the company's Manufacturing Facilities, or loss of these Karigars or failures of these Karigars to adhere to the relevant quality standards may have a negative effect on the company's reputation, business and financial condition.
- Certain of the company's Directors, its Promoter, members of the company's Promoter Group and Key Managerial Personnel may have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.
- The company requires certain approvals, permits and licenses in the ordinary course of business, and any failures or delay to obtain or renew them or to comply with their conditions in the future may adversely affect the company's operations.
- The company has expanded its stores footprint from 53 stores in Fiscal 2024, to 61 stores in Fiscal 2026 in 51 cities across the States of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and the Union Territory of Puducherry. If the company is unable to effectively manage or expand its retail network and operations or pursue the company's growth strategies, its may not achieve the expected level of profitability which may adversely affect the company's business prospects, financial condition and results of operations.
- Government measures and public appeals discouraging gold purchases may adversely impact demand for gold and the company's business.
- The company's ability to attract customers is dependent on the success and visibility of its stores. The company's failure to attract optimal volume of customers to its stores could materially and adversely affect the company's business, financial condition and results of operations.
- One of the company's Promoter Group entities, namely A. K. Exports operates in the same line of business as that of the Company and as a result they deal with certain common vendors in their ordinary course of business.
- The company's ability to access capital depends on its credit ratings. Non availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business and results of operations.
- The company's trade receivables has increased from Rs.585.94 million in Fiscal 2024 to Rs.1,164.50 million in Fiscal 2025 and to Rs. 2,146.92 million in Fiscal 2026, resulting in 1.99 times and 1.84 times increase respectively in the trade receivables which could result in the reduction of the company's profits and affect its cash flows.
- Any failures or disruption or change of the company's information technology systems may adversely impact its business and operations.
- Timely procurement of gold, the company's key raw material, as well as the quality and the price at which they are procured, play an important role in the successful operation of its business. The prices and availability of gold depends on factors beyond the company's control, including general economic conditions, competition, production levels and regulatory factors such as import duties. The non-availability or volatility in the cost of gold and absence of hedging facilities may have an adverse effect on its business, results of operations, financial condition and prospects.
- The company's insurance coverage may not be sufficient or adequate to cover its losses or liabilities. In Fiscal 2026, the company has an insurance coverage of 81.04% as a percentage of total assets. Further, the company has obtained some insurance in the name of its Promoter, Kiran Kumar Jain. If the company suffer a large uninsured loss or if its suffer an insured loss that significantly exceeds the company's insurance coverage, its financial condition and results of operations may be adversely affected.
- The company's inability to detect money-laundering and other illegal activities such as system failures or security breach fully and on a timely basis may expose it to additional liability and adversely affect its business and reputation.
- If the company fails to comply with laws relating to privacy and data protection, its may be subject to significant liability, negative publicity, an erosion of trust and increased regulation, which could materially and adversely affect its business, results of operations and financial condition.
- The company's "Other Current Liabilities" has increased from Rs. 31,982.04 million as at March 31, 2025 to Rs. 51,238.31 million as at March 31, 2026. This may have an adverse effect on its liquidity position and working capital requirements.
- The company has acquired its Subsidiaries; Asita Jewellery Manufacturing Private Limited and Centigrade Apparels Private Limited pursuant to the Asita SPA and the Centigrade SPA and may continue to engage in strategic acquisitions, investments and alliances that fit well with its strategic business objectives and growth strategies. If the company is unable to realize the anticipated benefits of acquisitions or investments or alliances or successfully integrate them with its business, the company's business, results of operations and financial condition could be adversely affected.
- Any labour disputes, strikes or work stoppages may lead to lost production and/or increased costs, which may adversely affect the company's business, results of operations and financial condition.
- The company accepts payments using a variety of methods, including credit and debit cards, digital wallets, UPI, money transfers, equated monthly payment and cash payments. The company is subject to payment-related risks, including risks associated with cash payments and payment processing risks and any material regulatory changes in the payment processing services.
- Certain sections of this Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by it exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company is exposed to consumer complaints pertaining to its products and the company's failure to address these complaints due to inefficiencies in redressal mechanism could lead to regulatory issues or litigations. Further any negative publicity or media coverage can lead to the dilution of its brand and goodwill, which may adversely affect the company's business, results of operations, financial condition, and cash flows.
- The company's business is working capital intensive, primarily due to the requirement to maintain high levels of gold and diamond inventory. Any inability to finance or efficiently manage its working capital requirements may adversely affect the company's business, financial condition, and results of operations.
- While the company has online presence to maximize customer reach, its focus primarily on a brick-and-mortar model to establish the company's physical presence and generate revenue in India's southern states. Therefore, the company does not generates any revenue from any online platforms which may expose it to competitive disadvantages.
- The industry in which the company operates is subject to scrutiny in relation to the Environmental, Social and Governance (ESG) practices, particularly with respect to the ethical sourcing of gold, diamonds and other precious materials. The company is currently not required to have any ESG framework in place covering any aspects of its supply chain. As ESG considerations become increasingly material to investment and customer decisions, any actual or perceived non-compliance may adversely affect the company's business and operations.
- The company is exposed to consumer complaints pertaining to its products and the company's failure to address these complaints in a timely manner could lead to litigation, which may adversely affect its business, results of operations, financial condition, and cash flows.
- The company's business is dependent on its brand reputation and goodwill. Any negative publicity, which may lead to the dilution of the company's brand and goodwill, could adversely affect its results of operations, financial conditions, cash flows and reduce the company's profitability.
- Majority of the company's Directors does not have any prior experience of being a director in any other listed company in India and lack of such adequate experience to address complexities associated with listed companies, could have an adverse impact on the company's business and operations.
- The company generates its sales directly from physical sales at the company's stores and any adverse developments affecting its operations in these regions, including closure of such stores, could have an adverse impact on the company's revenue and results of operations.
- The Company has prepared financial statements under Ind AS. Significant differences exist between Ind AS and other accounting principles, such as Indian GAAP, IFRS and U.S. GAAP.
The Issue type of Lalithaa Jewellery Mart Ltd is Book Building.
The minimum application for shares of Lalithaa Jewellery Mart Ltd is 74.
The total shares issue of Lalithaa Jewellery Mart Ltd is 84608276.
Initial public offer of up to 84,608,276 equity shares of face value of Rs. 5 each ("Equity Shares") of Lalithaa Jewellery Mart Limited (the "Company") for cash at a price of Rs. 201 per equity share (Including a Share Premium of Rs. 196 per Equity Share) ("Offer Price") aggregating to Rs. 1700.00 Crores ("Offer"). The offer comprises a fresh issue of 59,732,655 equity shares aggregating to Rs. 1200.00 Crores by the company (the "Fresh Issue") and an offer for sale of 24,875,621 equity shares ("Offered Shares") aggregating to Rs. 500.00 Crores by M. Kiran Kumar Jain (the "Promoter Selling Shareholder", and such offer for sale of equity shares by the Promoter Selling Shareholder, the "Offer for Sale"). The offer will constitute 15.12% of the post-offer paid up equity share capital of the company.
This offer includes a reservation of 329,670 equity shares aggregating to Rs. 6 Crores (Constituting up to 0.06% of the post-offer paid-up equity share Capital of the Company) for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers, offered a discount of 19 per equity share to eligible employees bidding under the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute 15.12% and 15.06%, respectively of the post-offer paid-up equity share capital of the company.
The face value of the equity shares is Rs. 5/- each.
Price Band: Rs. 201 per equity share of face value of Rs. 5 each.
The floor price is 40.20 times the face value of the equity shares.
Bids can be made for a minimum of 74 equity shares of face value of Rs. 5 each and in multiples of 74 equity shares of face value of Rs. 5 each thereafter.
A Discount of Rs. 19 per equity share of Rs. 5 each is being offered to eligible employees bidding in the employee reservation portion.