Joyalukkas India IPO

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IPO Synopsis

Gold jewellery maker, Joyalukkas India, has filed its preliminary papers with to raise funds via an initial public offering (IPO).

The issue comprises of issuance of fresh equity shares with a face value of Rs 10 each worth Rs 2,300 crore.
Edelweiss Financial Services, Haitong Securities India, Motilal Oswal Investment Advisors and SBI Capital Markets are the book running lead managers to the issue.

Objective of the Issue
The net proceeds from the issue will be used in the following manner: 
Rs. 1,400 crore of IPO proceeds will be used for cutting debt and 
about Rs 464 crore will be used for expanding operations, which includes opening eight new showrooms

About Joyalukkas India

Joyalukkas diamond jewellery is certified by Forevermark, IGI, GIA and DHC. They have developed a number of sub-brands that include Pride, Eleganza, Veda, Ratna, Zenina, Apurva, Masaaki Pearls and Li’l Joy Kids Jewellery.
Its jewellery items are divided into four categories: gold jewellery, diamond jewellery, silver jewellery, platinum and other precious metal and stone -based jewellery.

The product portfolio includes traditional, contemporary and combination designs across jewellery lines, usages and price points. The firms aim to focus more on a diverse product range by collaborating with contract manufacturers who are generally smaller, localised jewellery manufacturers from various parts of India.

Joyalukka which originated in Kottayam, Kerala, now has a presence in 65 cities with 85 showrooms and aims to tap the growing demand for the precious metal in the world's second-largest market.

The company is present in all major cities in five states of South India and presence in metros and mini metros in other parts of the country.
 

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 8066.3 8023.8 8091.8
EBITDA 946.3 648.9 946.3
PAT 471.8 40.7 116.1
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 4796.5 4444.4 3840.2
Share Capital 70.0 70.0 70.0
Total Borrowings 1450.8 1522.3 1236.7
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 330.9 -33.9 238.9
Net cash from / (used in) investing activities -38.7 -48.9 -51.7
Net cash flow from / (used in) financing activities -257.6 68.6 -211.5
Net increase (decrease) in cash and cash equivalents 34.6 -14.3 -24.3

Peer Comparison

Name of the company Basic EPS NAV Rs. per share PE RoNW %
Joyalukkas India Limited 6.12 22.34 NA 27.42%
Titan Company Limited 9.88 84.87 157.62 11.61%
Kalyan Jewellers India Limited 1.63 29.37 41.8 4.57%


Key Points

  • Strengths

    1. Established homegrown brand with focused sales and marketing strategy
    2. Leading jewellery company in India and well positioned to capitalize on industry growth
    3. Presence across India with a strong foothold in South India
    4. Diversified product portfolio across categories and price points

  • Risks

    1. Inability to maintain and enhance awareness of the “Joyalukkas” brand 
    2. Inability to identify customer demand accurately and maintain an optimal level of inventory in our showrooms 
    3. Regulatory actions and penalties/compounding fees for certain deficiencies in compliances with 4. FEMA regulations in relation to certain unsecured loans received by our Company from our Promoter
    5. Directorate of Enforcement has initiated investigations against our Company and has issued summons to our Promoter, certain members of the Promoter Group and some of the employees of our Company 
    6. Certain search and seizure operations were conducted by the Income Tax Department at the corporate office and showrooms of the Company, and residential premises of our Promoter and employees
    7. Dependent on third parties for the production and manufacturing of all of our products.

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the price band of the IPO?

The price band of the IPO details are yet to announced

When does the Joyalukkas IPO issue open and close?

The Joyalukkas IPO details are yet to announced

What is the size of Joyalukkas IPO issue?

The fresh issue comprises fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares.

Who are the promoters/key personnels of Joyalukkas?

Joyalukkas is promoted by Dr. Ramesh Kancharla, Dr. Dinesh Kumar Chirla and Dr. Adarsh Kancharla.

What is the allotment date of Joyalukkas IPO?

The allotment date of Joyalukkas IPO yet to announced

What is the Joyalukkas IPO’s listing date?

The issue IPO details are yet to announced

Who are the book runners for Joyalukkas IPO?

Kotak Mahindra Capital Company, J.P. Morgan India and IIFL Securities are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds will be used:

  • Early redemption of non-convertible debentures (NCDs) issued by the company, in full
  • Capital expenditure towards setting up of new hospitals
  • Purchase of medical equipment for such new hospitals
  • General corporate purposes
How to apply for the Joyalukkas IPO?

To apply for the IPO, follow the steps given below

  • Login to your 5paisa account and select the issue in the current IPO section
  • Enter the number of lots and price at which you wish to apply for
  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
  • You will receive a mandate notification to block funds in your UPI app
     
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