Kalyan Jewellers acquires Rs 352 Cr ahead of its IPO
Kalyan Jewellers is a well-known brand among Indian households. Started in 1993, it now has 137 showrooms across 21 states and Union Territories in India, and 30 showrooms located in the Middle East. 70% of its total sales is generated from gold jewellery, and the remaining from studded and other jewellery products.
Ahead of its IPO, Kalyan Jewellers has raised Rs 352 cr from Anchor Investors. The company IPO committee has decided to allot 4,04,48,275 shares at Rs 87 each to 15 anchor investors, resulting in the firm generating Rs 351.89 crore. These anchor investors include the Government of Singapore, Monetary Authority of Singapore, BNP Paribas Arbitrage, Kuber India Fund, Edelweiss Alternative Investment Opportunities Trust and Sundaram Mutual Fund, Calypso Global Investment Fund, Segantii India Mauritius, Baroda Large and Mid-Cap Fund, Cohesion MK Ideas Sub Trust, and HDFC Life Insurance Co. Ltd.
The Kerala-based company had opened its maiden public offer for bidding on March 16 with a price band of Rs 86-87 per share. The company intends to raise Rs 1,175 crore through its IPO which will close on March 18. This consists of a fresh issue worth Rs 800 crore and an offer for sale worth Rs 375 crore by existing shareholders. Warburg Pincus, through its affiliate Highdell Investment Limited, will sell shares up to Rs 250 crore, while TS Kalyanaraman, Kalyan Jewellers’ promoter, would offload shares worth up to Rs. 250 crore. In addition to this, the company has also reserved shares worth Rs 2 crore for its employees.
50% of the issue has been reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional bidders. The company had filed preliminary papers for IPO in the month of August last year and received the green flag from SEBI in October.
Investors can bid for a minimum of 172 shares and its multiple thereafter, resulting in a minimum application size of Rs 14,964 at the higher end of the price band. The company intends to use the funds to fuel its working capital and for general corporate purposes. It also intends to diversify channels of distribution and widen its product offerings.
SBI Capital Markets, Citigroup Global Markets India, ICICI Securities, and Axis Capital are the global co-ordinators and book running lead managers to the issue.
Kalyan Jewellers initially built their presence in the South Indian states of Telangana, Tamil Nadu, Andhra Pradesh, Kerala, and Karnataka. In 2012, they decided to expand their area of operation and opened a showroom in Ahmedabad, Gujarat. They also signed actor Amitabh Bachchan as their first National Brand Ambassador. In 2013, Kalyan Jewellers opened six showrooms in UAE on the same day, making its debut in the international market. In March 2020, the company announced to release Rs 100 million for COVID-19 relief work.