Kalyan Jewellers is the brand for ethnic jewellery with extensive designs and varieties in diamond and gold jewellery. With a growing experience of 45 years, the brand has expanded its presence over international borders as well. As per the reports, by the end of June 2020, the company hosted 107 showrooms over 21 states including union territories in India. Other than this, they have 30 showrooms in the Middle East as well. The revenue for the year 2019 and 2020 was INR 101,009.18 million.
A massive investment of INR 1200 crores had been made in the business by Warburg Pincus in 2014. It was succeeded by a smaller investment made in 2017 up for INR 500 crores. As per one of the most reliable rating agencies called ICRA, Warburg Pincus holds a 30% stake in Kalyan Jewellers as of September 2019. The operating income of the jewellery brand is INR 7, 454 crores along with an after-tax profit of Rs 50 crores as of 2019.
The IPO Review
The coming IPO was expected to launch tentatively between January 2021 to March 2021. Kalyan Jewellers 2021 IPO will be providing the latest issue of INR 1000 crore along with an Offer For Sale having a value of 750 crores. The OFS is aimed to offload shares with a value of INR 250 crores as shared by the promoter of the company i.e. T.S Kalyanaraman. Alongside, Highdell Investment is expected to make a sale of INR 500 crore investment.
It’s one of the most valuable IPOs to be seen in 2021 as the brand holds an extensive record in manufacturing and selling a variety of gold, diamond-studded and different jewellery products with different pricing. Also, their jewellery category varies as per special and specific occasions including weddings and more. The range of their casual jewellery products is one of the best sellers in their market.
The IPO is promoted by Mr T.S. Kalyanaraman, Mr T.K. Seetharam and Mr T.K. Ramesh. The issue will have the lead managers including Citigroup Global Markets India Private Limited, Axis Capital Limited, SBI Capital Markets Limited, ICICI Securities Limited, and BOB Capital Markets Limited. This issue has been registered with Link Intime Private Limited.
The Details
This section is dedicated to highlighting the important details of the IPO issued by Kalyan Jewellers in 2021.
- The issue of the IPO was earlier declared to take place in December 2020 however it was later delayed. As of now, no accurate date has been confirmed, but tentatively, it will take place in March 2021.
- The size of the IPO as suggested by Draft Red Herring Prospectus submitted by Kalyan Jewellers to SEBI could be near INR 1750 crores. The company aims to net around INR 1000 crores by the fresh share issues.
- Share prices of Kalyan Jewellers in this IPO hasn’t been declared, although, since the face value of all the shares is just INR 10 for each equity share, the premium is expected to be quite higher to gather INR 1000 crores.
The Objective of Kalyan Jewellers IPO
The amount gained in the form of net proceeds in this IPO is expected to be allocated for meeting the requirements of working capital and other common business purposes.