Joyalukkas India is considering an initial share sale to raise approximately $400 million in Q1 2022. A source close to the matter has revealed that the company is planning to file preliminary papers with SEBI in November or December this year.
Investors who are interested in subscribing to this forthcoming IPO need to know a few key details regarding the company. We’ll discuss them in detail below.
A Quick Glimpse at Joyalukkas
Based in Kerala, Joyalukkas is engaged in the production, distribution, and marketing of jewellery. The company’s offerings include gold, silver, precious stones, watches, and more.
Over the years, this company has managed to expand its global presence rapidly. Today, it caters to customers’ requirements in several major countries, such as the U.S., Saudi Arabia, Malaysia, Singapore, and more.
What Makes Joyalukkas Attractive to Investors?
The following are the key competitive strengths of Joyalukkas India that investors need to take into account ahead of the IPO launch:
- Joyalukkas has over 120 jewellery showrooms across more than 10 countries worldwide.
- This company has established a strong foothold all over India as well as the Middle East.
- Joyalukkas has effective marketing and advertisement strategies with a spate of celebrity endorsements.
- The company has a team of over 3,000 employees and more than 1 lakh 10 million customers.
- Joyalukkas India has received awards from the All India Gems and Jewellery Trade Federation.
Besides the strengths of Joyalukkas, it is imperative for individuals to be aware of some key financial highlights of this company. Let’s take a look at them.
|Financial Year||Operating Income (Rs.)||Profit after Tax (Rs.)|
|2017||67.21 billion||1.21 billion|
|2018||73.59 billion||2.24 billion|
|2019||80.92 billion||1.36 billion|
|2020||80.26 billion||0.42 billion|
In 2018, the industry witnessed a credit crunch along with stringent auditing measures following allegations of fraud worth $2 billion by Nirav Modi. Taking these factors into account, the jewellery group decided to shelve its plans to float an IPO that year.
However, the market scenario is different right now, with the stock market booming. Accordingly, it appears to be the right time for the company to launch its initial public offering. That said, for investors who are looking to subscribe to this public issue, it is essential to consider the strengths, weaknesses, threats, etc., of the company before placing the IPO order.
Frequently Asked Questions
- Who will be appointed as merchant bankers for Joyalukkas India IPO?
The merchant bankers to this public issue are not yet confirmed. However, a person close to the matter has said that the jewellery group has appointed Edelweiss Financial Services Ltd., Credit Suisse Group AG, Jefferies Group LLC, and IIFL Securities Ltd as merchant bankers.
- How can one apply for Joyalukkas India IPO once it opens for subscription?
Individuals who already have a trading account with Angel One can subscribe to Joyalukkas India IPO by signing in to their account. That said, new investors can easily place the Joyalukkas India IPO order by opening a DEMAT account with Angel One.
- What valuation is Joyalukkas seeking in its initial share sale?
Joyalukkas is looking for a valuation of $4.8 billion in its upcoming initial public offering.