Craftsman Automation, Laxmi Organics Industries, Kalyan Jewellers India, Suryoday Small Finance Bank, and Nazara Technologies are set to come out with IPOs, seeking to benefit from an equity market flush with liquidity.
The benchmark indices ended the highly volatile session last week nearly 1% higher with Nifty50 settling above the psychologically important 15,000 mark. This week, Indian markets will be guided by the US Federal Reserve s call on interest rates and domestic macroeconomic data. Besides, Covid-related news will also remain on investors radar. First and foremost, the markets would react to macroeconomic data viz IIP and CPI inflation, which came in after market hours on Friday. In a double whammy for the economy, industrial production growth re-entered the negative territory by contracting 1.6 per cent in January, while retail inflation soared to a three-month high of 5.03 per cent in February on costlier food items. The WPI inflation is scheduled to be released on March 15.
ET Intelligence Group: On the back of rally in the broader markets including jewellery stocks, Kalyan Jewellers is coming out with its maiden initial public offering (IPO) to offer partial exit to its investor Highdell, a Warburg Pincus Group company (Rs 250 crore) and promoters (Rs 125 crore) and remaining Rs 800 crore to meet its working capital requirements and other corporate purposes. After the issue, the promoter holding will reduce to 60.5% from 68%.The company’s revenue has been near flat over the past three years with single-digit profitability. However, the IPO is valued at a discount to Titan Industries, the largest peer. Given this and improving growth prospects for the organised jewellery sector, investors with high risk appetite may subscribe to the IPO.
The Rs 1,175-crore initial public offering (IPO) of Kalyan Jewellers India (KJIL) opens today (March 16) with a price band of Rs 86-87 per share. The IPO comprises of issuance of fresh equity up to Rs 800 crore and an offer for sale (OFS) worth Rs 375 crore. One of India’s largest jewellery retailers, Kalyan’s key businesses include design, manufacture, and sale of a variety of gold, studded and other jewellery products for various occasions, including weddings and daily wear. The company’s performance was impacted significantly during financial year 2018-19 (FY19) due to natural calamities in South India. Nine months of the current fiscal (9MFY21) were also impacted by the Covid-19 pandemic’s outbreak, leading to losses of Rs 80 crore. However, most analysts believe that brand recall and a strong pan-India presence makes Kalyan Jewellers a long-term bet, with profitability and balance sheet projected to improve.
Kalyan Jewellers IPO: As good as gold- Business News origin-businesstoday.intoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from origin-businesstoday.intoday.in Daily Mail and Mail on Sunday newspapers.