Shanti Gold International acquired 1,44,817 equity shares in Lalithaa Jewellery Mart Limited for ₹3.88 crore, marking a strategic equity investment in the listed jewellery retailer.

Transaction details

The share acquisition was executed through the secondary market on August 31, 2026. Shanti Gold International paid a weighted average price of ₹265.76 per share. The total consideration of ₹3,87,59,734 includes brokerage, taxes, and other levies.

Post-acquisition, Shanti Gold International holds approximately 0.03% of the paid-up equity share capital of Lalithaa Jewellery Mart Limited. The transaction is not classified as a related-party deal.

Target company profile

Lalithaa Jewellery Mart Limited is a South India-focused jewellery retailer incorporated in 1985. Its equity shares were listed on BSE and NSE on August 24, 2026. The company operates across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Puducherry.

As of March 31, 2026, Lalithaa Jewellery Mart reported a turnover of ₹2,50,239.27 million and a profit after tax of ₹10,098.17 million for FY26. The company’s authorised capital stands at ₹28 billion, with a paid-up capital of ₹27.99 billion.

Shanti Gold International secured strong investor interest in its rights issue, which was oversubscribed by 1.49 times. The board approved the allotment of 46,43,471 equity shares on August 24, 2026, raising approximately ₹99.83 crore.

The issue price of ₹215 per share included a premium of ₹205 over the face value of ₹10. Out of 70,13,318 shares applied for across 4,627 applications, 69,49,366 valid applications were received after rejecting 363 applications for technical reasons. No shares were kept in abeyance.

Allotment Breakdown

The subscription came from both existing shareholders and renouncees. Eligible shareholders applied for 39,61,815 shares, while renouncees applied for 30,51,503 shares. The final allotment reflects the pro-rata distribution based on the oversubscription ratio.

Consequent to the allotment, the company’s paid-up equity share capital increased from ₹72.09 crore (7,20,96,000 shares) to ₹76.74 crore (7,67,39,471 shares). The new shares rank pari-passu with existing equity shares. Trading in the newly issued shares is expected to commence on August 26, 2026.

Financial Performance Context

The capital raise follows a strong Q1FY27 performance where revenue from operations surged 144.69% year-on-year to ₹716.38 crore. Profit after tax (PAT) rose 46.94% to ₹50.48 crore, driven by a 61-62% increase in volume and price appreciation.

EBITDA grew 39% to ₹71.45 crore, resulting in a margin of 9.97%. Management noted that approximately 2-2.5 percentage points of this margin were derived from unrealized gains due to a change in inventory valuation method from FIFO to Weighted Average Cost. Excluding this, the underlying sustainable EBITDA margin is guided at 7.5-8% for FY27.

Strategic Initiatives and Outlook

The funds raised support ongoing capacity expansion, including the new Marol facility which commenced operations during Q1FY27. A new Jaipur plant with ₹47 crore capex is expected to become operational between mid-November and December 2026.

Key strategic developments include:

• Export Expansion: Establishing an office in Dubai to expand international footprint, pending RBI approval. Exports currently constitute 4% of total revenue.
• Product Mix: Studded jewellery accounts for approximately 75% of sales, with plain gold jewellery comprising the remaining 25%.
• Guidance: Management targets 50-60% revenue growth and 30-40% volume growth for FY27, maintaining a debt-to-equity ratio below 1x.