On Tuesday, one of India’s largest jewellery retailers, Joyalukkas, cancelled its planned initial public offering (IPO), according to a document on the market regulator’s website. This move makes it the first major company to withdraw its plans for an IPO this year.
Although Joyalukkas did not provide a reason for its decision to withdraw its 23-billion-rupee ($278 million) IPO, analysts suggest that macroeconomic concerns, such as market volatility and stubbornly high inflation, may have played a significant role.
According to Prashanth Tapse, a research analyst at Mehta Equities, “The primary market is still very much in a dry state unless this global economic condition settles. That would be the main reason why they have withdrawn it.” Last year, Snapdeal, an Indian e-commerce firm, also withdrew its $152 million IPO in December. Wearable electronics company boAt chose to raise funds from existing investors instead of pursuing its planned IPO in October.
Joyalukkas, one of India’s largest jewellery retailers, submitted its IPO documents in March last year and planned to allocate 14 billion rupees from the IPO funds to repay or prepay its debts. The company had planned to disclose the IPO date in the early part of 2023.
Joyalukkas operates showrooms in approximately 68 cities and is headquartered in the southern Indian state of Kerala. The IPO’s book runners were Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors Ltd, Haitong Securities India, and SBI Capital Markets Ltd. None of these firms have commented on the situation.
Gold jewellery is a conventional investment in India, the second-largest gold market in the world. According to the World Gold Council, a price increase has resulted in a 3% decrease in the use of gold in India.
Which are the 4 biggest jewellery retailers in India?
India is one of the largest jewellery markets in the world, with a long history and tradition of jewellery-making. In this explanation, we will provide an overview of India’s five biggest jewellery retailers, including their history, operations, and market position.
- Titan Company Limited: Titan is the largest jewellery retailer in India, with over 1,600 stores across 228 cities. In addition to jewellery, Titan also sells watches, eyewear, and other accessories.
- Malabar Gold and Diamonds: With over 250 showrooms across 10 countries, Malabar Gold and Diamonds is one of the largest jewellery retailers in India. The company is headquartered in Kerala and has a strong presence in the Middle East.
- Kalyan Jewellers: Founded in 1993, Kalyan Jewellers is a popular chain of jewellery stores in India with over 137 showrooms across the country. The company is known for its high-quality jewellery and has won numerous awards for its designs.
- Joyalukkas: Joyalukkas is a leading jewellery retailer in India with over 100 showrooms across the country. The company was founded in Kerala in 1987 and has since expanded to other parts of India, the Middle East, Singapore, and Malaysia.
