Retail portion of Kalyan Jewellers' IPO gets fully subscribed on Day 1

Kalyan Jewellers'retail portion of its IPO got subscribed completely on Day 1. Overall, the issue got subscribed 60 percent on the first day.

Kalyan Jewellers is one of the largest jewellery companies in India based on revenue as of March 31, 2020, according to the Technopak Report. The offer will close on March 18, 2021. The price band of the offer has been fixed at Rs 86 to Rs 87 per equity share. The IPO comprises issuance of fresh equity up to Rs 800 crore and an offer for sale (OFS) worth Rs 375 crore.

On Monday, Kalyan Jewellers has raised Rs 351.89 crore from 15 anchor investors, including the Government of Singapore, Calypso Global Investment Fund and others.

The Day 1 subscription numbers are QIB 0, HNI 0.2x, Retail 1.11x, Employees 1.15x and overall issue has been subscribed 0.60 times, as per data available on BSE and NSE at the end of Day 1 of subscription.

The IPO committee of the company, in their meeting held on Monday, have finalised the allocation of 40,448,275 equity shares to anchor investors at anchor investor allocation price of Rs 87 per equity share. The Government of Singapore took nearly 29 per cent of the anchor investor portion, and the Monetary Authority of Singapore took 5.11 per cent. Sundaram Mutual Fund took nearly 25 per cent through variousfunds.

HDFC Life Insurance (2.84 %), Calypso Global Investment (14.21%), SegantiII India Mauritius (3.98 %), Kuber India Fund (3.98 %), Moon Capital Trading (3.98 %), Edelwiss Alternative (3.98 %, Baroda Large and Mid Cap Fund (2.84 %), BNP PAribas Arbitrage (2.84 %) and Cohesion K Best Ideas Sub Trust (1.68 %).

Out of the total allocation of 40,448,275 equity shares to the investors, 10,344,768 Equity Shares (i.e. 25.6% of the total allocation to Anchor Investors) were allocated to 2 domestic mutual funds through a total of 4 schemes.

The company proposes to utilise the funds, which are being raised through the fresh issue, towards funding working capital requirements of the Company and general corporate purposes.

Axis Capital Limited, Citigroup Global Markets India Private Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Global Co-ordinators and Book Running Lead Managers to the Offer. BOB Capital Markets Limited is the Book Running Lead Manager to the Offer.