Lalithaa Jewellery made a strong debut in the stock market on Monday, giving investors 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 between ₹190 and ₹201 per share. One lot consisted of 74 shares, requiring an investment of ₹14,874.
Investors who received one full lot made a listing gain of around ₹4,736.
After listing, the stock continued to move higher. It gained nearly 2% during the session and touched 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 a subscription of 78.17 times, showing strong interest across all investor groups.
The ₹1,700 crore mainboard IPO remained open for subscription from August 17 to August 19. Before the public issue, the company had also raised ₹508.20 crore from anchor investors on August 14.
How Will the Company Use the IPO Funds?
The company plans to use the IPO proceeds to expand its retail network. Around ₹998 crore will be spent on opening 10 new jewellery stores.
Another ₹34.55 crore will be used to purchase IT hardware, software, furniture, and other equipment for these stores. The remaining funds will be used for general corporate purposes.
Promoter Holding Falls After IPO
After the public issue, the promoters’ stake in the company has reduced from 97.72% to 82.85%.
At the same time, the public shareholding has increased from 2.28% to 17.15%, giving more investors an opportunity to own shares in the company.
Grey Market Had Already Indicated a Strong Debut
Even before the listing, the IPO was performing well in the grey market.
On the listing day, the Grey Market Premium (GMP) stood at around ₹74, indicating a likely listing price of about ₹275, which was close to the actual market debut.
