Kalyan Jewellers IPO to open on Tuesday

Kalyan Jewellers IPO to open on Tuesday
Share to

Kochi: South India’s leading gold jeweller network Kalyan Jewellers, Initial Public Offer (IPO) will be open on Tuesday, March 16, 2021, and will end on March 18, 2021. According to a press release from the company, the price band fixed for the offer is Rs.86-87 apiece. The investors can bid for a minimum of 172 equity shares and in multiples of 172 equity shares thereafter.

The leading jeweller Kalyan was founded in 1993 by its current Chairman, T.S. Kalyanaraman. With a presence of over 130 plus owned stores across both India and in West Asia plans to raise Rs. 1,175 crore through the offer which comprises a fresh issue of Rs. 800 crore and an offer for sale of Rs 3,75 crore comprising offer sale of Rs. 125 crore worth of shares by the promoter TS Kalyanaraman and Rs. 250 crore by the investor Highdell Investment.

“The offer includes a reservation aggregating up to Rs. 2 crores for subscription by the eligible employees,” said the company.

Market Penetration
“We intend to continue to open additional showrooms as we expect a significant opportunity for further penetration in our existing markets as well as in new markets, primarily in India,” added the company.

Kalyan Jewellers, which is expanding its retail network across India and Middle-East proposes to utilize the fresh funds towards funding the working capital requirements and also towards general corporate purposes. US-based PE major Warburg Pincus which holds about a 24 per cent stake in the company is also looking at a partial exit through the proposed IPO.

The PE major made its initial investment in 2014 and has invested around Rs 1,700 crore in two tranches in Kalyan Jewellers. The initial investment by the US PC was the biggest private equity investment ever in the jewellery sector in India. In the initial tranch Warburg Pincus invested Rs. 1,200 crore in 2014 followed by the second round of Rs. 500 crore in 2017.

Axis Capital Limited, Citigroup Global Markets India Private Limited, ICICI Securities Limited and SBI Capital Markets Limited are the global coordinators and the book running lead managers to the IPO. BOB Capital Markets Limited is the book running lead manager to the offer.

The Red Herring Prospectus (RHP) is available on the websites of BSE Limited and the National Stock Exchange of India Limited. “Over the past two decades, the company has built a leading market position and a strong reputation with Indian consumers.

Leave a Reply

Your email address will not be published.