Lalithaa Jewellery made a strong debut in the stock market on Monday, rewarding IPO investors with impressive listing gains.
The company’s shares were listed at ₹265.30 on the BSE, a 31.99% premium over the IPO issue price. On the NSE, the stock opened at ₹265.
The IPO was priced in the range of ₹190 to ₹201 per share. Since one lot consisted of 74 shares, investors had to invest ₹14,874 for one lot.
Those who received an allotment earned a listing profit of around ₹4,736 per lot.
After listing, the stock continued to attract buying interest and climbed nearly 2% to touch an intraday high of ₹274.30 on the BSE.
IPO Received Strong Demand
Lalithaa Jewellery’s IPO received an overwhelming response from investors. It was subscribed 66.63 times during the three-day bidding period.
The retail investor category was subscribed 12.51 times, while qualified institutional buyers (QIBs) subscribed 153.80 times.
The non-institutional investor (NII) category saw 78.17 times subscription, showing strong demand across all investor groups.
₹1,700 Crore IPO Details
The IPO size was ₹1,700 crore. The company issued 59.7 million fresh shares, while shares worth ₹500 crore were sold through an offer for sale (OFS).
The mainboard IPO was open for subscription from August 17 to August 19. Before the public issue, the company raised ₹508.20 crore from anchor investors on August 14.
How Will the Company Use the IPO Funds?
The company plans to use the money raised from the IPO to expand its retail business.
Around ₹34.55 crore will be spent on IT hardware, software, furniture, and other infrastructure for 10 new stores.
Another ₹998 crore will be used to set up 10 additional stores, while the remaining amount will be used for general corporate purposes.
Promoter Stake Falls After IPO
After the IPO, the promoters’ shareholding has come down from 97.72% to 82.85%. At the same time, public shareholding has increased from 2.28% to 17.15%.
GMP Had Already Indicated a Strong Debut
Even before listing, the IPO was showing strong momentum in the grey market.
On the listing day, the Grey Market Premium (GMP) was around ₹74, indicating a likely listing price of about ₹275, which was close to the actual market debut.