Warburg Pincus to sell entire 9.17% stake in Kalyan Jewellers India

Private equity firm Warburg Pincus has decided to sell its entire 9.17 per cent holdings in Kalyan Jewellers India. On Monday, it sold 6.45 per cent stake in the open market via block deals. It sold 66.5 million shares at Rs 539.1 apiece to mop up Rs 3,584 crore. Among the buyers were Motilal Oswal Mutual Fund, Nomura and Government of Singapore.

Meanwhile, it entered into an agreement with managing director and promoter T S Kalyanaraman to sell another 2.36 per cent stake for Rs 1,300 crore at Rs 535 per share.

Shares of the jewellery retailer rose 9 per cent to end at Rs 597.5 on the BSE. Following the transaction, expected to close within a month, the promoter group’s shareholding in Kalyan Jewellers will increase from 60.59 per cent to 62.95 per cent.

“Warburg Pincus has played a crucial role in Kalyan Jewellers’ growth and expansion across India and the Middle East. The private equity firm initially held a 30 per cent stake in the company prior to its IPO. Over time, they have reduced their shareholding as part of a strategic exit plan,” Kalyanaraman said.

Warburg held the stake via an affiliate firm, Highdell Investment. Kalyan came out with an IPO in March 2021, where shares were priced at Rs 87.