Kalyan Jewellers' IPO opens on March 16; price band fixed at Rs 86-87

Kerala-based jewellery chain Kalyan Jewellers has priced its initial public offer (IPO) at Rs 86-87 per share. The IPO will be open from March 16-18. The Rs 1,175-crore offer comprises of fresh fund raise worth Rs 800 crore and an offer for sale of Rs 375 crore.

Promoter TS Kalyanaraman is selling shares worth Rs 125 crore and Warburg Pincus is selling shares worth Rs 250 crore in the IPO. Kalyanaraman and Warburg hold 24.5 per cent and 32 per cent stake in the company, respectively.  Kalyan Jewellers has reduced the IPO size. Earlier, it intended to do a Rs 1,750-crore IPO.

The country’s leading jewellery company will use the IPO proceeds for its working capital requirements and general corporate purposes.

Axis Capital, Citigroup, ICICI Securities, and SBI Capital are the investment bankers handling the issue.

The company operates over 100 showrooms across 21 states and Union Territories in India. It has 30 showrooms located in the West Asia.  The company designs, manufactures, and sells a wide range of gold, studded, and other jewellery products. The company had to shut down seven  showrooms in the West Asia owing to the economic slowdown in the region.

In the financial year 2020, the company posted a net profit of Rs 142 crore.