Kalyan Jewellers’ Rs 1,175-crore IPO to open on March 16

Kalyan Jewellers will launch its Rs 1,175-crore initial public offering (IPO) on March 16, the company said on Thursday. The price band of the IPO has been fixed at Rs 86-87 per share of the face value of Rs 10 each. The offer will close on March 18.

Proceeds from the issue will be used for funding working capital requirements and general corporate purposes, the company said. The Thrissur-based retailer has 137 showrooms across India and the West Asia.

Kalyan is backed by private equity major Warburg Pincus, which has a 24% stake through its investment arm Mauritius-based Highdell Investment. Warburg Pincus had invested in two tranches – Rs 1,200 crore in 2014 and Rs 500 crore in 2017.

The IPO comprises a fresh issue of shares aggregating up to Rs 800 crore and an offer for sale of shares worth Rs 375 crore by promoters and shareholders.

The offer for sale comprises selling up to Rs 125 crore worth of shares by promoter TS Kalyanaraman and another Rs 250 crore by Highdell Investment.

Kalyan had initially planned to raise Rs 1,750 crore through the IPO, but the offer size was reduced later.

For FY20, its revenue stood at Rs 10,100.92 crore while net profit for the period was at Rs 142.28 crore .The restated financial statement for the nine months of FY21 said the retailer suffered a loss of Rs 79 crore on an income of Rs 5,549.7 crore.

According to Technopak, the size of Indian retail jewellery sector was approximately $64 billion in FY20. The sector’s organised retail share stood at approximately 32% while the rest is dominated by the unorganised segment.