Private equity major Warburg Pincus backed Kalyan Jewellers has filed its draft red herring prospectus (DRHP) with market regulator Sebi on Monday to raise about Rs 1,750-crore through initial public offer (IPO). The IPO comprises Rs 1,000 crore of fresh issue and Rs 750 crore offer for sale by promoter T S Kalyanaraman and Highdell Investment, a Warburg Pincus firm, according to DRHP. While Kalyanaraman is planning to sell shares worth Rs 250 crore, the Highdell Investment has proposed .
Founded by Kalyanaraman in 1993 with a single showroom in Thrissur, Kalyan Jewellers now has 107 showrooms located across 21 states and union territories in India. It also has an international presence with 30 showrooms located in the Middle East as of June 30, 2020.
In fiscal 2019-20, Kalyan Jewellers revenue from operations of stood at Rs 10,181 crore, a modest increase of 3.73 per cent from previous year's Rs 9,814 crore. Kalyan Jewellers also reported a profit of Rs 142.27 crore as compared to a loss of Rs 4.86 crore in 2018-19.
Kalyan Jewellers, which filed the draft prospectus for the IPO with the stock market regulator Securities and Exchange Board of India (Sebi) has one year's time to launch the IPO..According to report, the company will offer equity shares of the face value of Rs 10 each aggregating to Rs 1750 crore, comprising a fresh issue of Rs 1000 crore and an offer for sale of Rs 750 crore, comprising up to Rs 250 crore by promoter T S Kalyanaraman and up to Rs 500 crore by Highdell Investment, a portfolio company of Warburg Pincus.
While Kalyanaraman owns 27.41 per cent in the company, the other promoters are his sons TK Seetharam and TK Ramesh own 22.17 per cent stake each in the jeweller.
The exact timeline of the IPO, issue size, and price band of shares are yet to be ascertained.
The home-grown jewellers, Kalyan Jewellers IPO is getting listed on the stock exchange. Kalyan Jewellers IPO size would be somewhere around Rs.1750 Crores.
The article herein reviews Kalyan Jewelers IPO & mentions more details about this IPO like the IPO objective, the IPO size, IPO lead managers, IPO release date, IPO offer price, promoters of the company and its background.
| Face Value | Rs 10 |
| Price Band | Rs X |
| Listing At | BSE, NSE |
| Min. Order Quantity | To be Updated |
| Listing Date | To be Updated |
| Offer for Sale | To be Updated |
| Fresh Issue | To be Updated |
| P/E Ratio | To be Updated |
| Issue Size | Rs.1750 Cr. |
Kalyan Jewellers India Limited started its business in 1993 with a store in Kerala. And since then, it has grown to own more than 120 stores in India as well as Gulf countries like UAE, Qatar, Kuwait and Oman.
It also has certain mini-stores in rural areas which have been set up under a special programme run by it i.e. My Kalyan programme.
The focus of Kalyan Jewellers has been towards the quality of product, the taste, the designs and the service to the customers which makes the customer feel as if the shopping experience has been worthwhile and in proportion to the value of money.
Key members of Kalyan Jewellers:
- T.S. Kalyanaraman (Cheif Managing Director)
- Rajesh Kalyanaraman (Executive Director)
- Ramesh Kalyanaraman (Executive Director)
Kalyan Jewellers IPO – Basis of the Offer Price
The issue price is generally determined by the company in consultation with the Lead Managers on the basis of various qualitative and quantitative factors.
The qualitative factors relevant to decide the issue price:
- Family legacy
- Foreign presence
- Skilled artisans and workforce
- Strong marketing
- Association with reputed brands
- Diversified designs and product range
The quantitative factors relevant for the issue price are:
- Earning per share
- Price/earning ratio
- Return on Net Worth
- Net Asset Value – NAV per Equity Share
- Comparison with listed industry peer review
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