The Lalithaa Jewellery Mart IPO entered its second day of bidding on Tuesday, August 18, with the issue already attracting healthy investor interest. The Rs 1,700-crore IPO was subscribed 69% on the opening day, while its grey-market premium stood at around 15%, signalling strong demand ahead of the final day of bidding.

Retail investors led the early response, with their portion subscribed 74% on Day 1. Investors bid for a significant portion of the 6.27 crore shares on offer, including the 3.12 crore shares reserved for retail investors.

The IPO has a price band of Rs 190–201 per share and 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.

The issue opened on August 17 and will close on August 19. The share allotment is expected to be finalised on August 20, with the shares likely to list on the NSE and BSE on August 24, subject to applicable timelines.

Anand Rathi Investment Banking and Equirus are the book-running lead managers, while MUFG is the registrar.

Market analysts see the IPO as a potentially attractive long-term investment, citing the company’s strong FY26 financial performance, valuation and expansion plans. With Lalithaa Jewellery Mart looking to sustain its growth momentum, investors will now track subscription trends closely, along with expectations around the stock’s listing performance.

Lalithaa Jewellery secures Rs 508 crore from anchor investors

Lalithaa Jewellery Mart Limited has raised Rs 508.20 crore from anchor investors ahead of its IPO. The company informed the stock exchanges that it allotted 2,52,83,581 equity shares at Rs 201 apiece to 22 anchor investors.

The anchor book saw participation from several prominent institutions, including Goldman Sachs Bank Europe SE – ODI, Morgan Stanley India Investment Fund Inc., Morgan Stanley Investment Funds Indian Equity Fund, Kotak Mahindra Life Insurance Company Limited, Bajaj Life Insurance Limited, Greater India Portfolio and Sanshi Fund-I.

Lalithaa Jewellery IPO GMP Today

The grey market premium (GMP) for Lalithaa Jewellery Mart is also drawing attention ahead of its listing. The stock is reportedly commanding a GMP of around 15%, indicating that shares are being quoted at a premium to the upper end of the IPO price band in the unofficial market.

At the upper price band of Rs 201, a 15% GMP translates into an indicative price of around Rs 231. However, investors should treat GMP figures with caution, as the grey market is unofficial and unregulated. The premium can fluctuate significantly before listing and should not be viewed as a guarantee of listing gains or long-term returns.

Lalithaa Jewellery IPO Sees Healthy Demand on Day 1

Lalithaa Jewellery Mart’s IPO received a positive response on the opening day, with the overall issue subscribed 69% against the 6.27 crore shares on offer. The subscription data showed healthy participation across investor categories, setting the stage for a closely watched second day of bidding.

Retail investors led the demand, with the Retail Individual Investors (RIIs) portion subscribed 74% against the 3.12 crore shares reserved for the category. The strong retail response underscores individual investors’ interest in the jewellery retailer’s public issue.

The Non-Institutional Investors (NIIs) category was subscribed 61%, with bids for the 1.33 crore shares on offer. Meanwhile, Qualified Institutional Buyers (QIBs) subscribed 67% of their 1.78 crore-share allocation.

Valuation

One of the key attractions of the issue is its valuation. At the upper end of the price band, Lalithaa Jewellery Mart’s price-to-earnings (P/E) ratio, based on diluted FY26 EPS, stands at 9.95 times, while the P/E at the lower end is 9.41 times.

This compares favourably with the industry peer-group average P/E of 29.69 times for FY26, suggesting that the IPO is priced at a relatively modest valuation compared with its peers. The floor price represents 38 times the face value, while the cap price represents 40.20 times the face value.

Lalithaa Jewellery IPO use of proceeds

Lalithaa Jewellery plans to use the net IPO proceeds primarily to fund its retail expansion, with the company proposing to set up 10 new stores. Of the Rs 1,033.23 crore earmarked for the expansion, Rs 34.55 crore will be spent on capital expenditure, including store fit-outs, furniture and fixtures, equipment, and IT hardware and software.

The bulk of the proceeds, Rs 998.68 crore, will be used to purchase inventory for the new outlets. The IPO proceeds therefore highlight the company’s strategy of expanding its physical retail footprint while building inventory capacity to support growth.

The remaining funds will be used for general corporate purposes, providing the company with some flexibility to meet broader business requirements as it expands.

Strong FY26 financial performance

Lalithaa Jewellery Mart enters the IPO market on the back of a sharp improvement in financial performance. Total income rose 48% year-on-year to Rs 25,039.80 crore in FY26, from Rs 16,907.88 crore in FY25. PAT surged 177% to Rs 1,009.82 crore from Rs 364.73 crore.

About Lalithaa Jewellery Mart

Lalithaa Jewellery Mart sells gold, silver and diamond jewellery under the Lalithaa brand, with products tailored to regional preferences across South India. It operates 61 stores across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Puducherry.

Tier II and Tier III cities account for 45 stores and contributed 60.25% of revenue in FY26.

Should you subscribe to the Lalithaa Jewellery Mart IPO?

According to Master Capital Services, India’s gold jewellery retail industry was valued at Rs 10,619 billion in FY26, after growing at nearly 20% CAGR between FY22 and FY26. However, elevated and volatile gold prices are expected to moderate industry growth to 3-5% CAGR through FY30.

The shift towards organised retail remains a key growth driver. Regulatory measures such as GST, hallmarking and HUID, along with changing consumer preferences, are expected to accelerate the transition from unorganised to organised players. Organised chains could account for 45–50% of the market by FY30, while online jewellery is projected to contribute 9–11% of industry revenue.

South India remains a key jewellery market, accounting for nearly 40% of India’s total demand. The regional market was valued at around Rs 5,026 billion in FY26 and is expected to grow at 6–7% CAGR to Rs 6,200–6,600 billion by FY30.

Against this backdrop, Lalithaa Jewellery Mart is well positioned to benefit from the growth in organised jewellery retail. Its strong South India presence, particularly in Tier II and Tier III cities, along with its 61-store network, in-house manufacturing, large-format outlets and wide product range, provides multiple growth levers.

Overall, favourable industry trends and Lalithaa Jewellery Mart’s strong regional footprint could make the IPO an interesting long-term opportunity for investors seeking exposure to India’s evolving jewellery retail market.