Jewellery retailer Joyalukkas India has withdrawn its initial public offering worth Rs 2,300 crore.
The Kerala-headquartered jewellery-maker discontinued its issue on Feb. 17, according to its filing shared with SEBI on Tuesday.
The Securities and Exchange Board of India had received the draft papers for Joyalukkas' initial share sale on March 28 last year. The reason for the withdrawal was not disclosed.
The IPO was slated to be a fresh issue of an unspecified number of equity shares, with a face value of Rs 10 each. Out of the net proceeds from the issue, Rs 1,400 crore was to be used for repayment or prepayment of the company's debt by the end of the current fiscal.
Joyalukkas was planning to utilise Rs 463.9 crore towards opening eight new showrooms. The company intended to invest Rs 240.4 crore in this fiscal, and another Rs 223.5 crore in the fiscal ending March 2024. The remainder was to be used for general corporate purposes.
Founded by Alukkas Varghese Joy in 2002 in Kerala, Joyalukkas is present across multiple regions in India, with a focus on the southern states. It operates 85 showrooms across 68 cities, with a customer base of two million as on Jan. 31, 2022, the company said in its draft red herring prospectus.
The company's operations include sale of gold jewellery and other jewellery products that include metals such as platinum and silver, as well as precious stones such as diamonds.
As of fiscal 2021, 84.24% of the company's revenue came from gold, while its diamond vertical made up 14.14% of the revenue. It had reported a revenue of Rs 8,066.29 crore during this period, and net profit of Rs 471.75 crore.
The company's peers include Titan Co. and Kalyan Jewellers, which are listed on Indian exchanges.
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