Joy Alukkas IPO: Joy Alukkas India IPO Date & Details

Joyalukkas, a Kerala-based jewellery retail chain, has filed draft papers with the SEBI to raise Rs 2300 crore via IPO. Let us look at the details:

Joyalukka IPO: About the company

Joyalukkas started operations in 2002 by setting up a showroom in Kottayam, Kerala. Currently, they operate 85 showrooms under the Joyalukkas brand located across 68 cities.
Of these 85 showrooms, six are large-format showrooms (with an area of 8,000 square feet or more), including the largest showroom in Chennai, Tamil Nadu which has an area of over 13,000 square feet.
Their product profile includes traditional, contemporary, and combination designs across jewellery lines, usages, and price points.
Their brand has a high brand recall through extensive market reach, consistent quality, innovative and customised design, high service level, and an evolved marketing strategy.

Joyalukkas India has filed a draft red herring prospectus (DRHP) with SEBI to launch a Rs 2,300-crore IPO.
The net proceeds of the issue will be utilised for repayment or prepayment of certain borrowings availed by the company worth Rs 1,400 crore.
The company will use Rs 463.9 crore for financing the opening of eight new showrooms.

Once the company is listed, it will join the likes of Titan Company, and Kalyan Jewellers India and will compete with them.

Joyalukkas IPO: Financials

The revenue from operations was Rs 8,091.84 crore, Rs 8023.79 crore, and Rs 8,066.29 crore for Fiscals 2019, 2020, and 2021, respectively.
The company's spending on advertising and marketing activities was Rs 137.41 crore, Rs 108.93 crore, Rs 51.67 crore, and accounted for 1.70%, 1.36%, 0.63% of their revenue from operations in such periods.
The Net profit for the half-year ended in September 2021 stood at Rs 268.95 crore versus Rs 248.61 crore last year.
In FY21, the company recorded the highest growth in EBITDA per square foot and the highest profit after tax margins among the top players in India.

They are an established homegrown brand focused on sales and marketing strategy.
One of the top jewellery companies in India and well-positioned to capitalise on industry growth.
Joyalukkas has a presence across India with a strong foothold in South India.
Diversified product portfolio across categories and price points.

The company will leverage its brand value and will continue to expand the retail network in a cost-effective manner.
It will focus on increasing the sale of studded jewellery and expanding its product portfolio.
It plans to leverage technology to grow its operations and focus on online channels.
Focus on the B2B segment and arrangements with leading corporations.

Any deterioration in public perception of the brand could adversely impact its business.
Their inability to identify customer demand accurately and maintain an optimal inventory level in showrooms.
The showrooms are located mostly in south India. Any adverse development affecting such a region may hurt the business.