Kalyan Jewelers to launch the largest IPO of ₹ 1,750 crore in the jewelery sector

Kalyan Jewelers

A leading jewelery company in India and one of the biggest gold retailers in the country, Kalyan Jewellers India Ltd is launching the country’s largest IPO in the jewelery sector.

The company has filed a draft document with SEBI for its initial public offering.  The company plan to collect 1,750 crore through IPO.

According to the documents filed, the IPO will have a fresh issue of Rs 1,000 crore and Rs 750 crore. The offer will be under sale.

The offer for sale is from promoter T. S. Kalyanaraman and Hydel Investment. Kalyanaraman will sell shares worth Rs 250 crore while Hydel will sell shares worth Rs 500 crore.

The money raised through the fresh issue and will be used by the company for working capital needs and general corporate purposes.

T.S. Kalyanaraman, founder of Kalyan Jewellers started its jewellery business in 1993 with a single showroom in Kerala.

To become a pan-India jewellery company, the jewellery company has expanded with more than 107 jewellery showrooms located across 21 states including Gujarat, Maharashtra, Rajasthan, Kerala and union territories in India.

All of the jewellery showroom are operated and managed by Kalyan Jewellers India Ltd. The company also sells its jewellery products through its online platform ‘candere’.  Investment banks Citi Bank, ICICI Securities, and Axis Capital are advising the company on the IPO.

The company’s net profit increased 4.87 times in the last financial year. The promoter currently owns 76 per cent stake in the company while Warburg Pincus LLC holds 24 per cent stake.

Warburg had invested Rs 1,200 crore in Kalyan Jewelers in 2014. Then in 2017, it raised another Rs 500 crore. The company had revenue of Rs 10,101 crore for the quarter ended March 2020.

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The company’s net profit was Rs 145 crore that was 4.87 times higher than a year earlier. As of June, 2020, the company had 107 showrooms in India and 30 in the Middle East.