Lalithaa Jewellery Mart shares made a strong debut on the Indian stock market on August 24, listing at Rs 265 apiece against an IPO issue price of Rs 201. The listing delivered a gain of 31.84% to investors who received shares in the initial public offering.
The strong debut followed heavy demand for the company’s Rs 1,700 crore IPO, which was subscribed 66.63 times during the bidding period from August 17 to August 19.
The public issue comprised a fresh issue of Rs 1,200 crore and an offer for sale worth Rs 500 crore. The minimum application size was 74 shares, requiring a retail investment of Rs 14,874. The company completed share allotment on August 20 before listing on the NSE and BSE.
Strong financial growth helped boost investor confidence. Between FY25 and FY26, the company’s revenue rose 48%, while profit after tax jumped 177%. Its established presence across South India, particularly in Tier II and Tier III cities, and expansion potential also supported market sentiment.
However, rising borrowings remain a key concern. Outstanding debt stood at Rs 1,238.10 crore as of June 30, 2026, while the debt-to-equity ratio increased to 0.53 times in FY26 from 0.49 times in FY24.
The IPO was valued at around 11.1 times FY26 diluted earnings, lower than the average valuation of listed peers. While the company’s growth outlook remains positive, investors will closely watch its debt management and ability to sustain earnings growth.
Leave a Reply