New Delhi, June 27 -- Lalithaa Jewellery is planning its public debut as gold trades near all-time highs. Acquired from a struggling jeweller in 1999, the company has grown manifold over the years. Now, management aims to take the business to the next level with an IPO.

The draft red herring prospectus (draft IPO document) filed this month details a public issue worth Rs.1,700 crore, comprising a fresh issue of Rs.1,200 crore and an offer for sale worth Rs.500 crore by the promoter. More than Rs.1,000 crore of the proceeds will be used to add more stores, the company said.

So far so good, but the company has drawn flak for its governance practices. Specifically, related-party transactions related to the payment of brand ambassador fees ...