South India's fav Lalithaa seeks ₹1,700 cr from D-St

Lalithaa Jewellery Mart, a prominent jewellery retailer based in South India, is seeking to raise ₹1,700 crore from the stock market. The company aims to achieve this through a fresh issue and an offer for sale. After the IPO, the stake held by the promoter group will decrease to 82.9% from 97.7%. Lalithaa specializes in gold, silver, and diamond jewellery, with its entire revenue stream originating from the southern states of India.

This geographical focus indicates a high level of concentration in the region. The company's revenue per store surpasses that of its competitors, while its revenue per square foot is at the higher end of the peer group's range. Despite these strengths, the valuation of Lalithaa falls at the lower end compared to its peers. Given these factors, investors with a high-risk appetite may find the IPO appealing.

Established in 1985, Lalithaa Jewellery Mart operates under the brand name Lalithaa and has a presence in 61 stores across 51 cities in Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Puducherry. The company manages two manufacturing facilities in Tamil Nadu, with the Thirumudivakkam plant in Chennai and the Maraimalai plant in Kanchipuram, the latter being operated through a wholly owned subsidiary, Asita Jewellery Manufacturing.

In the fiscal year 2026, 45 out of the company's 61 stores were located in Tier II and Tier III cities, contributing to 60.3% of the total revenue. Approximately 92% of Lalithaa's revenue is generated from gold jewellery.