Kalyan Jewellers fixes price band of Rs 86-87 a share for its Rs 1,175-crore IPO
Kalyan Jewellers India Ltd (Kalyan Jewellers) on Thursday fixed a price band of Rs 86-87 a share for its Rs 1,175-crore initial public offering (IPO), which will open for subscription on March 16.
The share sale comprises issuance of fresh equity aggregating up to Rs 800 crore and an offer for sale (OFS) worth Rs 375 crore.
Kalyan Jewellers’ promoter T.S. Kalyanaraman will be offloading shares worth up to Rs 125 crore, while Highdell Investment, an affiliate of Warburg Pincus, will sell up to Rs 250 crore of shares through the OFS route.
Around 50 per cent of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders. Proceeds from the fresh issue of shares would be utilised for working capital requirements and general corporate purpose.
The three-day public issue would conclude on March 18 and the bidding for anchor investors would open on March 15. Bids can be made for a minimum of 172 shares and in multiples of 172 shares thereafter.
At the end of June 2020, the company had 137 showrooms with 130 of those in India and 30 in West Asia. Within India, while 65 showrooms were in South India, 42 were outside this region.
Kalyan Jewellers designs, manufactures and sells a wide range of gold, studded and other jewellery products.Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets are the global co-ordinators and book running lead managers.
While the secondary equity markets have remained volatile because of concerns of rising US bond yields, the primary segment continues to witness hectic activity.
Last year despite the pandemic, fund raising through the public equity markets came at a record level as Rs 1,77,468 crore was mobilised. This was 116 per cent higher than Rs 82,241 crore that was raised in 2019, according to Pranav Haldea, managing director, PRIME Database group.
So far in this calendar year, almost a dozen companies that includes IRFC, Home First Finance, RailTel Corporation and Indigo Paints have tapped the markets.
Senior officials with the firm said that one of the reasons behind the success of Kalyan Jewellers emerging as one of the trusted brands in this business is the quality & transparency, even as the adoption of an hyper-local approach has also paid rich dividends. Industry circles here indicate that impact of Covid-19 on retail jewellery business is almost over and that while expenses on matters like food & beverages have come down during a wedding, the same trend is not seen when it comes to jewellery demand.