Joyalukkas, a gold and diamond retail jewellery chain, is planning to go for an initial public offering (IPO) to raise around Rs 650 crore, which would help it to double its business from Rs 2,650 crore at present.
After unveiling a wax statue of actor and Joyalukkas brand ambassador R Madhavan here today, Joyalukkas group chairman Joy Alukkas told Business Standard that the company would file the Draft Red Herring Prospectus (DRHP) with the regulator Securities and Exchange Board of India (SEBI) next week for the proposed IPO.
“We are planning to raise around Rs 600-650 crore, which will support our business target of Rs 5,300 crore in the next two years,” he said.
“At present, the market is also bullish and we also see good return for the investors,” added T Nandakumar, chief financial officer, Joyalukkas India Ltd. The company would dilute around 25-30 per cent to the public through the proposed IPO, he said.
In the last eight years, our average growth was around 40 per cent in India, said Alukkas.
Currently, the company has 22 retail outlets in the country and plans to add another 20 in the next two years, mainly in south India. The next showroom will be opened at Vijayawada on January 9, 2011, said Alukkas, to be followed by Delhi and Tiruchi in April 2011.