Warburg Pincus-backed Kalyan Jewellers Fixes Issue Price For $161m Indian IPO

Kalyan Jewellers chairman TS Kalyanaraman. Photo: Bloomberg

Warburg Pincus-backed Kalyan Jewellers India Ltd’s Rs1,175 crore initial public offering (IPO) will open on 16 March, with the issue price fixed at ₹86-87 a share. The offer will close on 18 March.

The company had initially planned to raise Rs1,750 crore through the IPO but the offer size was reduced due to unfavourable market conditions.

The IPO comprises a fresh issue of equity shares aggregating up to Rs800 crore and an offer for sale of shares worth Rs375 crore by promoters and shareholders. The company in consultation with book running lead managers and may consider a pre-IPO placement.

The offer for sale comprises selling up to Rs125 crore worth shares by promoter TS Kalyanaraman, and another Rs250 crore by Highdell Investment Ltd. Kalyanaraman and Highdell Investment hold 27.41% and 24% stake in the company, respectively.

Proceeds from the issue will be used for funding working capital requirements over the next two years.

For fiscal 2020, its revenue stood at Rs10,100.92 crore, of which 78.19% came from its India operations, and 21.81% was from the Middle East. Net profit for the period was at Rs142.28 crore compared to a loss of Rs4.86 crore a year ago.

As of March 2020, its total outstanding debt was at Rs3,640.31 crore.

Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets are the global co-ordinators and book running lead managers to the issue.

As of June 2020, the company had 107 showrooms across 21 states and union territories in India, and 30 in the Middle East.

The company designs, manufactures, and sells a wide range of gold, studded and other jewellery products across various price points for various occasions and daily wear.

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