SynopsisLalithaa Jewellery Mart shares surged after debuting at a 32% premium to the IPO price, reaching over 36% gains. Strong subscription, attractive valuations versus peers and expansion plans have supported investor optimism. Analysts, however, caution about gold-price volatility, working-capital intensity, inventory management and consumer demand while offering mixed hold or profit-booking strategies.ETMarkets.comThe strong market debut comes after Lalithaa Jewellery Mart’s Rs 1,700 crore initial public offering received an overwhelming response.Shares of Lalithaa Jewellery Mart continued to surge further, after marking a strong market debut by listing at around 32% premium over IPO price on Monday, with analysts highlighting attractive valuations while noting down the key risks.Lalithaa Jewellery Mart shares listed at Rs 265 apiece on NSE, marking around 32% premium over the IPO price of Rs 201 apiece. After the strong market debut, the shares of the company rose further to Rs 274.40 apiece, rallying over 36% from IPO price.The strong market debut comes after Lalithaa Jewellery Mart’s Rs 1,700 crore initial public offering received an overwhelming response, with the issue being subscribed 62.97 times overall between August 17 and August 19. The maiden public issue of the company comprised a fresh issue of Rs 1,200 crore and an offer for sale (OFS) of Rs 500 crore by promoter and founder Kiran Kumar Jain.Grey market estimates vs listing premiumDespite the strong market debut, the listing premium was slightly below grey market estimates. Ahead of listing, the unlisted shares of Lalithaa Jewellery Mart were trading with nearly 37% grey market premium (GMP) over the IPO price, according to sites tracking the unofficial market.Lalithaa Jewellery Mart plans to use a significant portion of the IPO proceeds to accelerate its retail expansion strategy, with funds earmarked for setting up 10 new stores.Also Read | Lalithaa Jewellery Mart shares shine on debut, list at 32% premium over IPO priceShould you buy, sell or hold Lalithaa Jewellery shares?Despite Lalithaa Jewellery Mart’s strong market debut, investors should not ignore the risks, said Shivani Nyati, Head of Wealth at Swastika Investmart. She noted that jewellery retail is highly dependent on gold prices, consumer demand, inventory management and working capital. For the pre-listing outlook, sentiment has been strong. “Low risk Investors can book the profit while the other can hold for medium to long term,” according to the analyst.The strong market debut of the company comes after the Rs 1,700 crore initial public offering of the company garnered several ‘Subscribe’ calls from analysts. Ventura Securities had highlighted that the company is a leading mass-market jewellery retail chain in Southern India.“At the upper price band of Rs. 201, the issue is valued at 11.1x FY26 diluted EPS of Rs.18.0, compared with the listed peer average P/E of 29.7x. The valuation represents a meaningful discount to peers, this combined with the company's return ratios, regional franchise and store expansion opportunities we recommend a ‘Subscribe’ rating for the issue,” said BP Wealth.Nirmal Bang meanwhile said that the valuation gap from peers offers a good investment opportunity considering risks related to gold-price volatility and working-capital intensity. With planned store expansion in place and proven strong fundamental record provides long term growth visibility for Lalithaa, it added.Geojit Investments also had issued a ‘Subscribe’ call for short to medium term investors, given the company’s strong store expansion, industry leading revenue per store, robust return ratios, strong brand, and integrated manufacturing-led retail model.Also Read | IPO rush continues: 10 issues to raise over Rs 3,500 crore this week(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless