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.
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The jewellery arm of the Titan Company, Tanishq, set up video calls, virtual appointments and introduced the ‘endless aisle’ concept, which showcases Tanishq’s entire inventory across the country.
Kalyan too saw video calls happening, but people still wanted to be physically present at the store for the final decision-making process, according to Kalyanaraman. “People do not want to make high-ticket purchases online,” he explained. The son of Kalyan Jewellers founder, TS Kalyanaraman, disclosed that showrooms saw two types of customers during the pandemic. One, where the whole family came to the mall but only one or two members came into the store. The others waited in the car while interacting over a video call.
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Kalyan Jewellers Rs 1,175 crore IPO offer to open on March 16; price band fixed at Rs 86-87 per share
Kalyan Jewellers IPO: Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders. The offer includes a reservation aggregating up to Rs 2 crore for subscription by eligible employees
BusinessToday.In | March 11, 2021 | Updated 16:24 IST
Kalyan Jewellers IPO: The three-day public issue will conclude on March 18 and the bidding for anchor investors would open on March 15
Kalyan Jewellers India Limited will open its initial public offer of equity shares of the face value of Rs 10 each on March 16. The three-day public issue will conclude on March 18 and the bidding for anchor investors would open on March 15, Kalyan Jewellers announced in a virtual press meet today.