Kalyan Jewellers IPO gets subscribed 2.61 times on final day

Kalyan Jewellers' initial public offering (IPO) got subscribed 2.61 times on Thursday, which is the final day of subscription. The jewellery firm raised Rs 351 cr anchor bids from marquee investors like Singapore's GIC, Sundaram Mutual Funds and HDFC life amongst others.

The company said it saw good demand for its shares from the qualified institutional buyers (QIBs) as the portion reserved for them was subscribed 2.76 times. Market analysts said that HNIs invested in the Kalyan IPO keeping in mind long term gains, as opposed to listing gains.

Portion reserved for retail was a total of Rs 411 crore, and the company garnered a subscription of 2.8 times. The hyper-local nature of the business, strong brand recall and the overall faith consumers have in the yellow metal have given impetus to the retail subscription, said the company.

Kalyan Jewellers, one of the largest jewellery companies in India based on revenues, had 1.8 per cent share of the overall jewellery market and 5.9% share of the organized jewellery market.

The company has good opportunity to expand and gain market share as it has a strong product portfolio and uses local artisans as contract manufacturers to aligns with local tastes, which would cater to rising demand.  Its ‘My Kalyan’ network focuses on marketing and customer engagement in rural and semi-urban areas, which further support growth.