Kalyan Jewellers IPO in progress: Should you subscribe to the share sale?
Kalyan Jewellers raised Rs 351.89 crore from anchor investors. Total 4.04 crore shares at Rs 87 per share were allocated to 15 anchor investors
BusinessToday.In | March 16, 2021 | Updated 11:35 IST
Kalyan Jewellers promoter TS Kalyanaraman will offload equity shares aggregating up to Rs 1,25 crore and Highdell Investment Ltd, an affiliate of Warburg Pincus, would sell up to Rs 250 crore worth of shares through the OFS route.
Kalyan Jewellers opened its initial public offer (IPO) today. The three-day public issue will close on March 18 . On March 15, Kalyan Jewellers raised Rs 351.89 crore from anchor investors. Total 4.04 crore shares at Rs 87 per share were allocated to 15 anchor investors. The allocation was done at the higher end of the IPO price band. The IPO has a price band of Rs 86 to Rs 87 per equity share. The issue comprises equity shares aggregating up to Rs 1,175 crore, including fresh equity
Updated Mar 16, 2021 | 10:03 IST
Kalyan Jewellers IPO: Although Kalyan Jeweller is the second-largest jeweller in India after Titan Company, its financial performance is nowhere close to Titan. Representational image
New Delhi: Kalyan Jewellers India, the country s second-largest jeweller after Titan, wants to raise Rs 1,175 crore through an initial public offer (IPO) of shares. The IPO opens today (March 16) and will close on March 18 (Thursday). The company has priced its shares in a band of Rs 86-87.
Out of the IPO proceeds of Rs 1,175 crore, Rs 250 crore would go to Highdell, Warburg Pincus company, which was an early investor in the company. Now it wants to partially exit its investment. promoters of the company will get Rs 125 crore by diluting their stake, and the remaining Rs 800 crore (fresh issue) will go to the company to meet working capital requirements and for other corporate purposes. Following the IPO, promoter holding in the company
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Monetary Authority of Singapore and government of Singapore are the two international marquee investors amongst the 15 anchor investors, who have been allocated shares in Kalyan Jewellers initial public offering (IPO) that opened on Tuesday for public. These two entities have been allocated 5.11 per cent and 29 per cent respectively in the anchor allocation of Kalyan Jewellers. Sundaram Mutual Fund,
HDFC Life Insurance, Calypso Global Investment Fund, Segantii India Mauritius, Kuber India Fund, Moon Capital Trading PTE. Ltd,
Edelweiss Crossover Opportunities Fund (Series-II), Baroda Large & Mid-Cap Fund,
BNP Paribas Arbitrage – ODI, Cohesion Mk Best Ideas Sub-Trust were part of the anchor allotment.
Akhil Nallamuthu
BL Research Bureau |
Updated on
March 15, 2021
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Branded jewellery market holds promise; to justify valuation Kalyan has to substantially improve its recent financial metrics
This a packed week for initial public offerings (IPOs) as many companies look to capitalise on prevailing bull market conditions. The latest in the list is Kalyan Jewellers. The company designs, manufactures and sells branded jewellery products including gold and diamond jewellery through a pan-India network of retail stores.
The size of the offer is ₹1,175 crore out of which ₹800 crore is fresh issue and the remaining ₹375 crore is an offer-for-sale (OFS) by promoter TS Kalyanaraman and PE investor, Highdell Investment, an affiliate of Warburg Pincus.
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.