Jobaaj Stories
Kerala-based jewellery giant Joyalukkas Jewellers has withdrawn its massive Rs 2,300 crore IPO plan as the company did not disclose any reasons for pulling out of its plan to go public.
Joyalukkas Jewellers is a jewellery company founded in 2002 in Thrissur, Kerala. The company retails jewellery made of Gold, Diamond, Silver, Pearl, Platinum and Precious stones. The company operates famous jewellery brands like Eleganza, Apurva, Li’l Joy, Masaaki, and Pride.
The company has a strong presence in South India as 93% of all its revenues originate from South Indian states, while the balance comes from West Indian states. The company has almost 90 showrooms all over India. For fiscal 2021, the company earned a revenue of Rs 8,066.29 crores while earning a profit of Rs 471.75 crores.
In March 2022, the business submitted its Draft Red Herring Prospectus (DRHP). According to the DRHP, the company was in talks to raise funds to tune Rs 2,300 crores to repay/prepay debts, fund expansion plans, and other corporate purposes.
The company had planned to offer 50% of its issue to QIBs, 35% to NIIs, and the balance to RIIs. Haitong Securities, Edelweiss, Motilal Oswal, and SBI Capital Market were to serve as book-running lead managers to the issue. According to plans, the IPO was to be announced supposedly in early 2023.
However, the company has shelved its IPO plans again (the first time being in 2018 due to the Nirav Modi scam) as the company did not disclose any reasons for the same. One possible reason could be a fall in the jewellery demand due to rising gold prices. The quarter that ended in December 2022 saw a spike in demand for jewellery due to the wedding/festive season, which in the coming quarters is anticipated to decline.
Interestingly, Joylukka Jewellers is not the only company that cancelled its plans to go public. In the second half of 2022, BoAt, Pharmeasy and Snapdeal aborted their plans to go public while citing adverse market conditions.
- Aman Agarwal.
