Overview
- The IPO, which was fully subscribed on Tuesday, Aug 18, completed an anchor allocation of about ₹508.2 crore to 22 investors at ₹201 a share and drew bids 3.07 times the issue on Day 2.
- The offer comprises a fresh issue of up to ₹1,200 crore and an offer-for-sale up to ₹500 crore, and the shares are scheduled to list on BSE and NSE on Aug 24.
- Lalithaa reported FY26 revenue near ₹25,040 crore and profit of about ₹1,010 crore, giving a FY26 P/E of roughly 11.1x and an implied post-IPO market value near ₹11,250 crore at the top of the band.
- Brokerages generally recommend subscribing because of the valuation gap with peers and strong return ratios, but they warn material risks including a ₹1,066 crore GST dispute, promoter-related matters, high inventory and negative operating cash flow.
- The company operates 61 stores concentrated in South India, relies on gold for over 92% of revenue, and plans to use fresh proceeds to fund store expansion, a strategy that increases working-capital needs and local market exposure.