Lalithaa Jewellery Mart Ltd. is planning to restart investor roadshows for its initial public offering (IPO), months after the company unofficially paused its ₹1,700-crore share sale amid media scrutiny over promoter remuneration, corporate governance and structural metrics. According to reports from Mint, a person working on the transaction stated that "we are doing an internal review of the previous regulatory filing, and roadshows might start in a month or two." The Chennai-based jeweller had originally submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in June 2025 and secured regulatory approval to proceed with the IPO in October 2025, though transaction timelines were deferred. As per Mint, the person added that "the financial metrics and valuation expectations will be recalculated to align with current public market benchmarks and volatile input costs," noting that "the 12-month regulatory deadline still holds, but we can't do roadshows with FY25 numbers any more."
According to the DRHP, Lalithaa's revenue has increased at a compounded annual growth rate (CAGR) of 16% from ₹6,083 crore in FY17 to ₹16,788 crore in FY24, with the company clocking ₹16,901 crore in sales in FY25. The firm's revenue in the first half (April-September) of FY26 stood at ₹11,316 crore, as reported by ratings agency Icra. The company's revenue composition includes 70-75% from gold jewellery sales, around 20% from bullion sales, and the balance from silverware, diamonds and other segments. As reported by Mint, the first transaction stalled internally because underwriters could not re-adjust valuation benchmarks with institutional funds after media pushback on the offer, with a second person noting that "gold was also on a bull run, which, while raising sales, also raised input costs and simultaneously dampened consumer sentiment."
Media reports highlighted how related-party transactions pertaining to the payment of brand ambassador fees to its promoter had been flagged by proxy advisors as conflict of interest. However, the brand ambassador deal with the promoter has since been terminated, and the controversial fees did not feature on the company's statements starting FY25. According to Mint, the company was drawing attention due to legal and regulatory proceedings amounting to more than ₹600 crore against it and its promoter, with a tax demand worth more than ₹1,000 crore also under litigation. These numbers amount to more than four times the ₹360 crore profit reported in FY24, though the company expects the tax demand to drop by more than ₹600 crore once the requisite order is issued by appropriate authorities.
Starting from the final quarter of 2025, gold prices saw significant volatility, rising from approximately ₹1,30,000 per 10 grams in October 2025 to peak levels in early 2026. According to Mint, gold prices reached close to ₹1,70,000 per 10 grams by March 2026, driven by geopolitical tensions and central bank purchases. Following a price correction in mid-March that reduced rates to approximately ₹1,56,000, prices consolidated at these levels through the second quarter of calendar 2026, trading between ₹1,52,000 and ₹157,000 per 10 grams in early June 2026. As reported by Icra, sales figures were supported by a sharp increase in gold prices, with volumes declining in FY2025 due to weak market sentiments but showing a slight rebound during the first half of FY2026. The pricing baseline was sustained by physical demand surrounding the wedding calendar and Akshaya Tritiya, leaving spot prices for 24-karat gold trading at the consolidated levels.
Anand Rathi Advisors Ltd and Equirus Capital Pvt remain engaged as book-running lead managers for the upcoming refiling. According to Mint, the revised public offering will serve as a test for investor appetite within the organized retail gold sector, where Lalithaa Jewellery competes against Titan Co., Kalyan Jewellers India Ltd., and Senco Gold Ltd. The company's ability to maintain healthy turnover and mobilize customer advance through jewellery purchase schemes relatively limits its working capital requirements, though earnings remain exposed to fluctuations in gold prices, as noted by Icra. Queries emailed to Lalithaa Jewellery on 8 June remained unanswered till press time.
