Gold jeweller Joyalukkas files for $300 million IPO in India

Gold jeweller Joyalukkas India Ltd plans to raise as much as Rs23 billion ($300 million) from an initial share sale, seeking to tap into the growing demand for the precious metal in the world’s second-biggest consumer.

The proceeds from the issue will be used to pay back some loans and to open new stores, the company said in a draft prospectus.

Edelweiss Financial Services Ltd, Haitong Securities India Pvt, Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd are the lead managers to the issue.

The industry’s prospects have brightened, after two bleak years, as the waning pandemic is encouraging Indians to once again flock to jewellery stores. Joyalukkas operates in a market that is dominated by small shops and national chains like the Tata Group’s Tanishq and Warburg Pincus LLC-backed Kalyan Jewellers India Ltd, which listed on stock exchanges last year. Joyalukkas has 85 showrooms in India.