Kerala-based jewellery retail chain Joyalukkas India Ltd has filed draft papers with Securities Exchange Board of India (SEBI) to raise around Rs 2300 crore via initial public offerings. The proceeds from the issue worth Rs 1,400 crore will be used to repay debt. As of February 28, 2022, the total outstanding debt of the firm was at Rs 1,524.47 crore.
The firm also plans to use Rs 463.90 crore for financing the opening of the new showrooms. The firm operates 85 showrooms under the “Joyalukkas” brand located across 68 cities in India with an aggregate area of approximately 344,458 square feet, as of January 31, 2022. Of these 85 showrooms, six are large-format showrooms (with an area of 8,000 square feet or more), including the largest showroom at Chennai, Tamil Nadu that has an area of over 13,000 square feet.
The firm maintains an inventory of jewellery made of gold, diamond and other precious stones, platinum and silver, all with an extensive array of designs. Its gold, diamond and other jewellery inventory in each individual showroom reflects regional customer preferences and designs.
Its product profile includes traditional, contemporary and combination designs across jewellery lines, usages and price points. Its gold, diamond and other jewellery inventory in each showroom reflects regional customer preferences and designs. Its focus on design and innovation, ability to recognize consumer preferences and market trends, the intricacy of our designs and the quality of the products are its key strengths.
" We believe that our large format showrooms provide a luxury experience and customer service, that in combination with the inventory and variety that our showrooms offer enhances our efficiency as they require less managerial staff in proportion to the variety of jewellery products we offer, and enables us to attract and retain a growing customer base", the firm said in its DRHP. As of 31 January 2022, it exceeded over 2 million customers in India.
For the half year ended in September 2021, its revenue was at Rs 4,012.26 crore against Rs 2,088.77 crore a year ago. Net profit for the period stood at Rs 268.95 crore versus Rs 248.61 crore last year.