Jeweller Joyalukkas Withdraws Rs 2,300-Crore Initial Public Offering

About Rs 1,400 crore from the IPO funds were to be used for repayment or pre-payment of debt, Joyalukkas had said in its draft prospectus released in March last year

Joyalukkas operates showrooms across around 68 cities and is one of the biggest jewellery retailers in India.

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Jeweller Joyalukkas has withdrawn its Rs 2,300 crore ($277.95 million) initial public offering (IPO), a document on the market regulator's website showed on Tuesday. The reason for the withdrawal, however, was not immediately clear. Joyalukkas did not immediately respond to Reuters' request for comment.

The jeweller, based in Kerala, operates showrooms across roughly 68 cities and is one of the biggest jewellery retailers in the country.

According to the report, about Rs 1,400 crore ($169.16 million) from the IPO funds were to be used for repayment or pre-payment of debt, the company had said in its draft prospectus released in March last year. The date for the impending IPO was scheduled to be announced in early 2023.

The IPO's book runners Edelweiss Financial Services Ltd, Motilal Oswal Investment Advisors Ltd, Haitong Securities India, and SBI Capital Markets Ltd also did not immediately respond to a request for comment.

Gold jewellery is a traditional investment in India, the second-biggest market for gold in the world. The World Gold Council had said last month that a rise in prices had led to a 3 per cent slip in consumption of the yellow metal in India.

Meanwhile, Rishabh Instruments, a global energy efficiency solution company, has received capital markets regulator Sebi's nod to mop-up funds through an IPO.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 75 crore and an offer for sale (OFS) for up to 94.17 lakh equity shares by its promoter group shareholders and an existing investor, according to its draft red herring prospectus (DRHP).

Under the OFS, Asha Narendra Goliya will offload 25 lakh equity shares, Narendra Rishabh Goliya (HUF) will sell 5.17 lakh shares, Rishabh Narendra Goliya will dispose of 4 lakh shares, and SACEF Holdings II will sell 60 lakh equity shares in the company.

The firm, which had filed draft papers with the Securities and Exchange Board of India (Sebi) in December 2022, obtained its observation letter on February 17, 2023, an update with the regulator showed on Tuesday. In Sebi's parlance, its observation implies its go ahead to launch initial share-sale.