The Kerala-based, Kalyan Jewellers, filed for an initial public offering (IPO) to raise Rs 1,700 crore, the largest IPO by any jewelry retail brand in the domestic bourses, as per the reports.
Kalyan Jewellers IPO Details
On Monday, retail jeweller Kalyan Jewellers filed for an initial public offering (IPO) to raise Rs 1,700 crore with pan-India presence, making it India’s biggest retail IPO since 2017.
Basically, the Jewellers is backed by the private equity firm Warburg Pincus.
It has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) for a listing of its shares on BSE and NSE.
The IPO will offer a fresh issue of shares worth Rs 1000 crore.
The promoter TS Kalyanaraman is offering a part of his holding to raise Rs 250 crore.
On the other hand, private equity giant Warburg Pincus, who owns 24 percent stake in the jeweller, will raise Rs 500 crore by selling a part of its shares in the IPO.
Here Kalyanaraman owns 27.41 per cent in the company and the other promoters including his sons, TK Seetharam and TK Ramesh own 22.17 per cent stake each in the jewellery business.
Prior to this, PC Jewellers hit the market with a Rs 600 crore listing in December 2012.
What To Expect In Future?
After filing the Kalyan Jewellers IPO, the shares of Tamil Nadu jeweller chain, Thangamayil Jewellery saw a gain up to 9 per cent on Tuesday’s trading session.
Further, investors are expecting a positive rub-off effect and a better value discovery of Thangamayil.
This smaller player is considered as the better player than Kalyan on several parameters such as return on equity, sales growth, working capital and debt ratios.
The executive director, Kalyan Jewellers, Ramesh Kalyanaraman said, “Sales have picked up and we are witnessing a quick recovery. Customers who had done pre-wedding booking with us, are now spending at least 35 per cent more than the booked amount,” in a recent interview.
So far, the exact timeline of the IPO, issue size, and price band of shares are yet to be established.
Kalyan Jewellers recorded a revenue growth as high as Rs 10,100 crore in 2019-20.