By CL Jose
Market likely to see IPOs by 3 Thrissur-grown cos during FY23
KOCHI/March 27-2022: The Joyalukkas Group, one of country’s leading jewellery retailers, hopes to utilise a big chunk of the fund to be raised through its upcoming Rs2300 crore initial public offering (IPO), to pay off most of its debt.
The company has on Saturday (March 26) filed the draft red herring prospectus (DRHP) for the IPO with Sebi, the market regulator.
The proposed pay-off of bank loans will help the company wipe out almost 92 per cent of its current debt at Rs1528.52 crore, and usher it towards becoming a debt-free company – a long-nurtured dream of its eponymous chairman, Joy Alukkas (seen in the picture).
IPOs by 3 Thrissur-grown cos
Quite interestingly, three business groups founded by Thrissur-based businesspersons – namely, ESAF Small Finance Bank, Popular Vehicles and Sales Ltd and now, Joyalukkas, are set to become public listed companies during the ensuing financial year itself as they all have now filed DRHP for IPOs.
As per the plans put forward by Joyalukkas following its IPO, while Rs1400 crore from the offer proceeds will be set aside to “repay or prepay in full or part of certain borrowings availed by the company”, Rs463.9 crore will be used to finance the opening of new showrooms during the current financial year and the next.
Book-runners
The book-running lead managers to the issue are Motilal Oswal Investment Advisors Ltd, Edelweiss Financial Services Ltd, Haitong Securities India Pvt Ltd and SBI Capital Markets Ltd, whereas the Registrar to the issue is Link Intime India Pvt Ltd.
Key financials
Joyalukkas that currently operates 85 showrooms across the country, has reported net profit of Rs268.95 crore for the 6-month period ending September 30, 2021 compared with Rs248.61 crore for the corresponding period in the previous year.
The company generated a revenue of Rs4012.26 crore for the same 6-month period against Rs2088.77 crore for the corresponding earlier period.
The net worth of the company as of September end, 2021, was to the tune of Rs1916.7 crore, which works out a net asset value (NAV) of Rs283.68 apiece.
With a face value of Rs10 each share, the current paid-up capital of the company is Rs770.3 crore divided among 77.03 crore shares, which is 99.98 per cent held by Joy Alukkas.
