UPDATE 2-Indian jeweller Joyalukkas withdraws $278 mn IPO

Indian e-commerce firm Snapdeal pulled its $152 million IPO in December, amid a meltdown in tech stocks, while wearable electronics company boAt, in October, decided to raise funds from existing investors rather than go ahead with a planned IPO

Joyalukkas, one of India's biggest jewellery retailers, shelved plans for a public listing, a document on the market regulator's website showed on Tuesday, making it the first major company this year to pull its plans for an initial public offering (IPO).

Joyalukkas did not give a reason for withdrawing its ₹23-billion ($278 million) IPO, but analysts said the most likely reason was macro-economic concerns such as market volatility and stubbornly high inflation.

"The primary market is still very much in a dry state unless this global economic condition settles. That would be the main reason why they have withdrawn it," said Prashanth Tapse, a research analyst at Mehta Equities.

Joyalukkas did not immediately respond to Reuters' request for comment.

Indian e-commerce firm Snapdeal pulled its $152 million IPO in December, amid a meltdown in tech stocks, while wearable electronics company boAt, in October, decided to raise funds from existing investors rather than go ahead with a planned IPO.

Joyalukkas filed its IPO paper last March and planned to use ₹14 billion of the proceeds to repay or pre-pay debt. It was scheduled to announce the IPO date in early 2023.

The company, based in the southern Indian State of Kerala, operates showrooms across roughly 68 cities.