Chennai: Jewellery chain Joyalukkas has filed the draft red herring prospectus for its initial public offering with markets regulator Securities and Exchange Board of India (Sebi). The jeweller wants to raise Rs 2,300 crore through the issue of fully fresh shares.
The face value of the equity shares are Rs 10. Not more than 50 per cent of the issue will be available for allocation to qualified institutional buyers and up to 60 per cent of the QIB portion would be allocated to anchor investors on a discretionary basis. Not less than 35 per cent of the issue shall be available for allocation to retail individual bidders.
The company plans to use the proceeds from the offer towards the repayment or pre-payment of Rs 1400 crore of borrowings. As of February 28, 2022, the company had total outstanding borrowings of Rs 1,524 crore.
Further, Rs 463 crore will be used to finance the opening of eight new showrooms in FY23 and FY24. In FY23, four showrooms will be opened in Mumbai, Habsiguda and Mehdipatnam in Telangana and Bhubaneshwar. Those in Siddipet, Suchitra and Chandanagar in Telangana and Gulbarga in Karnataka will come up in FY24. Total investment on these stores is Rs 492 crore.
Currently, the company operates 85 stores in 68 cities. Joyalukkas posted revenue from operations of Rs 8,066 crore for FY21 against Rs 8,024 crore a year ago. Its net profit stood at Rs 471 crore against Rs 40 crore.
