Retail jewellery chain Joyalukkas India Ltd has filed preliminary papers with SEBI to raise Rs 2,300 crore through an Initial Public Offering (IPO).

The IPO will comprise fresh issue of equity shares and there will be no Offer for Sale (OFS), according to the Draft Red Herring Prospectus (DRHP). Edelweiss Financial Services Ltd, Haitong Securities India Pvt Ltd, Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd are the book running lead managers for the IPO.

The company will use the net proceeds worth Rs 1,400 crore for the repayment or prepayment of borrowings, in full or part, of all, or certain, borrowings for the company, and Rs 463.90 crore for financing the opening of eight new showrooms.

The funds will also be utilised for general corporate purposes. The Kerala-based firm is into sale of gold jewellery, studded jewellery, and other jewellery products, including diamonds, platinum and silver. More than 90% of its revenue comes from the Southern region, followed by the Western region.

The company plans to add eight new showrooms over the next two years across Telangana, Maharashtra, Odisha and Karnataka. Joyalukkas clocked a profit of Rs 471.75 crore in FY21 as against Rs 40.71 crore in the year-ago period.