Joyalukkas to make some changes in books, calls off Rs 2,300-crore IPO plan

IPO proceeds were intended to be used to repay debt (Representative image)

Kerala-based jewellery retail chain Joyalukkas India Ltd has withdrawn the plan to launch a Rs 2,300 crore (($278 million) initial public offering (IPO), as per a document shared on the website of the market regulator.

A top company official told Reuters that it needed more time to bring into effect certain substantial changes in its financial results, before making its debut in the market.

The plan is to refile the IPO documents "at the earliest, subject to market conditions", the news agency quoted Joyalukkas chief executive Baby George as saying.

The company, which operates 85 showrooms under the 'Joyalukkas' brand across 68 cities in India, had filed the draft red herring prospectus (DRHP) in February last year.

In the pre-IPO document, it stated that the proceeds from the issue worth Rs 1,400 crore will be used to repay debt. The firm had also planned to use Rs 463.90 crore for financing the opening of new showrooms.

As per the schedule, the IPO date was expected to be announced in early 2023.

Joyalukkas, notably, maintains an inventory of jewellery made of gold, diamond and other precious stones, including platinum and silver, all with an extensive array of designs.

The withdrawal of the IPO plans comes amid the ongoing volatility in the market. In December, e-commerce player Snapdeal scrapped its $152 million listing plan, at a time when tech stocks faced a setback. Earlier, wearable electronics firm boAt opted to raise funds from existing investors in October, rather than proceeding with an IPO.