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Lalithaa Jewellery IPO: ₹1,700 Cr Target Amidst Risk Flags

By ThePip DeskLalithaa Jewellery IPO: ₹1,700 Cr Target Amidst Risk Flags

Lalithaa Jewellery Mart plans a ₹1,700 Cr IPO (Aug 17-19, 2026). Investors face risks: rising inventory, negative cash flow, and revenue tied to gold prices.

Lalithaa Jewellery Mart is targeting ₹1,700 crore from its Initial Public Offering, which is set to open from August 17 to August 19, 2026. The South Indian jewelry retailer plans to list tentatively on August 24, 2026.

IPO Snapshot

  • ₹1,700 crore: Total capital aimed for the IPO.
  • ₹190–₹201: Price band per share.
  • ₹1,033 crore: Funds allocated for opening 10 new retail outlets in South India.

The company reported revenue of ₹25,024 crore in FY26. However, this growth was primarily driven by increasing gold prices, not higher sales volume.

Financial Red Flags

  • 93 to 143 days: Increase in inventory days, tying up more capital.
  • -₹398 crore: Negative operating cash flow in FY26.
  • Revenue growth tied to gold prices, posing a risk if prices stabilize or decline.

Lalithaa Jewellery Mart is valued at 11.3 times its FY26 earnings at the upper end of the price band. This valuation is considerably lower than competitors like Kalyan Jewellers and Thanga Mayil Jewellery, which trade around 40 times their earnings.

Investors are advised to track subscription demand during the IPO period and the company’s strategies for managing inventory and gold price volatility post-listing.

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