Shares of Lalithaa Jewellery Mart made a dazzling Dalal Street debut on Monday, listing at a 32% premium over IPO price. The stock opened at Rs 265 on the BSE & NSE, as compared to its issue price of Rs 201.
The Rs 1,700-crore IPO, which opened for subscription on August 17 and closed on August 19, drew an exceptional response, with the issue subscribed 62.97 times overall. Investors placed bids for a substantial portion of the 6.27 crore shares on offer.
Breaking down the subscription data, the retail category was subscribed 11.81 times, while the Non-Institutional Investors (NII) segment saw 73.90 times subscription. Qualified Institutional Buyers (QIBs) led the frenzy, with their portion subscribed a staggering 145.38 times.
Lalithaa Jewellery Mart had fixed the IPO price band at Rs 190–201 per share. The issue comprises a fresh issue of Rs 1,200 crore and an offer for sale (OFS) of Rs 500 crore by promoter and founder Kiran Kumar Jain.
Anand Rathi Investment Banking and Equirus are the book-running lead managers, while MUFG is acting as the registrar.
Lalithaa Jewellery IPO Valuation
Valuation is emerging as one of the key attractions of the Lalithaa Jewellery IPO. At the upper end of the price band, the company’s price-to-earnings (P/E) multiple, based on diluted FY26 EPS, stands at 9.95x, while the P/E at the lower end is 9.41x.The valuation looks relatively attractive when compared with the company’s industry peer group. The average FY26 P/E of the peer group stands at 29.69x, significantly higher than Lalithaa Jewellery Mart’s IPO valuation. The IPO’s floor price is 38 times the face value, while the cap price is 40.20 times the face value.
How Lalithaa Jewellery Will Use IPO Proceeds
Lalithaa Jewellery Mart plans to use a significant portion of the IPO proceeds to accelerate its retail expansion strategy, with funds earmarked for setting up 10 new stores.
Of the Rs 1,033.23 crore proposed to be utilised, around Rs 34.55 crore will be allocated towards capital expenditure. This includes spending on store fit-outs, furniture and fixtures, equipment, as well as IT hardware and software.
The bulk of the funds—approximately Rs 998.68 crore—will be deployed towards purchasing inventory for the new outlets.
The planned utilisation of funds highlights the company’s strategy of expanding its physical retail presence while building adequate inventory capacity to support growth. A portion of the proceeds will also be used for general corporate purposes, providing the company with additional flexibility as it scales up operations.
Lalithaa Jewellery Financial Performance
Lalithaa Jewellery Mart heads into its IPO on the back of a strong improvement in its FY26 financial performance. The company’s total income jumped 48% year-on-year, rising from Rs 16,907.88 crore in FY25 to Rs 25,039.80 crore in FY26. Profitability grew at an even faster pace. Profit after tax (PAT) surged 177%, climbing from Rs 364.73 crore in FY25 to Rs 1,009.82 crore in FY26.
About Lalithaa Jewellery Mart
The retailer sells gold, silver and diamond jewellery under the Lalithaa brand, with products tailored to regional preferences across southern India. It operates 61 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and the Union Territory of Puducherry.
Tier II and Tier III cities account for 45 of its stores and contributed 60.25% of the company’s revenue in FY26.
The combination of 62.97-times subscription, strong institutional demand, a GMP of around 27%, relatively attractive valuation and robust FY26 earnings growth has created significant market interest around Lalithaa Jewellery Mart.
Still, GMP remains an unofficial indicator, and the actual listing price can differ substantially. Investors should therefore consider the company’s fundamentals, valuation and long-term growth prospects rather than relying solely on grey-market trends.
