Kalyan Jewellers to open IPO for Rs 1,175 Cr on Mar 16; price band fixed at Rs 86-87 per share
The Initial Public Offering (IPO) of Kalyan Jewellers India Ltd will open for public subscription between March 16-18. The price of its shares is fixed at a band of Rs 86-87 a share for its Rs 1,175 crore-initial share-sale.
The three-day public issue would conclude on March 18 and the bidding for anchor investors would open on March 15, Kalyan Jewellers announced in a press release.
The IPO comprises issuance of fresh equity aggregating up to Rs 800 crore and an Offer For Sale (OFS) worth Rs 375 crore where the bids can be made for a minimum of 172 equity shares and in its multiples thereafter.
Kalyan Jewellers' promoter T S Kalyanaraman would be offloading shares worth up to Rs 125 crore, while Highdell Investment Ltd, an affiliate of Warburg Pincus, would sell up to Rs 250 crore worth of shares through the OFS route.
TS Kalyanaraman, Founder and Managing Director, Kalyan Jewellers
Half of the issue is reserved for qualified institutional buyers, 35 percent for retail investors, and 15 percent for non-institutional bidders. The offer includes a reservation aggregating up to Rs 20 million for subscription by eligible employees (the “Employee Reservation Portion”).
Proceeds from the fresh issue of shares would be utilised for working capital requirements and general corporate purpose.
Axis Capital Partners, Citigroup Global Markets India, ICICI Securities, and SBI Capital Markets are the global co-ordinators and book running lead managers to the offer. Last month, the capital markets watchdog had sought clarification from the merchant banker regarding the company's public issue.
Ramesh Kalyanaraman (Left), TS Kalyanaraman (Centre), and Rajesh Kalyanaraman (Right)
Kalyan Jewellers filed preliminary papers for IPO in August 2020 and obtained SEBI’s go-ahead in October.
In 1993, Kalyanaraman used his personal savings of Rs 25 lakh and took a bank loan of Rs 50 lakh to start Kalyan Jewellers.
By the end of June 2020, the company had 107 showrooms across 21 states and union territories in India, and 30 showrooms in the Middle East, with a turnover of Rs 10,000 crore.
Kalyan Jewellers designs, manufactures, and sells a wide range of gold, studded, and other jewellery products.