Lalithaa Jewellery Shares List 32% Higher After 63X IPO Subscription

Shares of Lalithaa Jewellery Mart made a strong debut on the stock exchanges on Monday, listing at a premium of more than 31% over the IPO issue price after the jewellery retailer's public issue received strong investor demand.

The shares were listed at ₹265 per share on the NSE, representing a premium of 31.84% over the issue price of ₹201. On the BSE, the stock debuted at ₹265.30, up 31.99%.

Following the listing, Lalithaa Jewellery Mart's market capitalisation stood at ₹14,849.10 crore, according to BSE data.

The debut, however, was below expectations in the grey market, which had indicated a potential listing gain of around 37%.

Strong Investor Interest

The ₹1,700-crore IPO received 62.97 times subscription overall during the August 17-19 bidding period.

The issue received bids for 395.22 crore shares against 6.27 crore shares on offer, according to NSE data.

Qualified institutional buyers subscribed to 145.38 times the shares reserved for them. The non-institutional investor category was subscribed 73.90 times, while the retail portion received 11.81 times subscription.

Lalithaa Jewellery Mart had also raised ₹508 crore from anchor investors, including Goldman Sachs, ICICI Prudential Mutual Fund and Bandhan Mutual Fund.

IPO Details

The company had fixed the IPO price band at ₹190-201 per share, valuing it at around ₹11,250 crore at the upper end of the price band.

The issue comprised a fresh issue of up to ₹1,200 crore and an offer for sale of up to ₹500 crore. The proceeds from the fresh issue will primarily be used to fund the establishment of new stores.

Lalithaa Jewellery Mart opened its first store in Chennai's T Nagar in 1985 and sells gold, silver and diamond jewellery.

Broker's View

Shivani Nyati, Head of Wealth at Swastika Investmart, said Lalithaa Jewellery Mart's strong debut reflected investor interest, while noting that the company remains attractively valued compared with organised peers such as Kalyan Jewellers and Titan.

She highlighted the company's return on equity of more than 41% but also pointed to risks including its inventory-heavy business, negative operating cash flow of around ₹397.7 crore in FY26, a ₹1,066-crore GST dispute and promoter-related concerns.

Nyati maintained a positive but cautious view and advised existing investors to hold with a stop loss at ₹245 on a closing basis, while fresh investors should wait for a meaningful correction before entering.