kalyan jewellers ipo: Kalyan Jewellers IPO subscribed 2.64 times
The high networth individual category was subscribed 1.93 times while the portion reserved for retail investors received bids of 2.85 times. Qualified institutional buyers (QIBs) segment was subscribed 2.79 times.
The Rs 1175 crore issue was priced in the Rs 86-87 range. At Rs 87 per share, the stock is valued 63 times FY20 earnings. In comparison, Titan is trading at a trailing 12-month PE of 173 and Tangamayil at 10 times. Post Issue implied market cap of Kalyan Jewellers will be Rs Rs 8961 crore compared to Rs 1.3 lakh crore of Titan or Rs 1366 crore of PC Jewellers.
The IPO comprised a fresh issue of Rs 800 crore and an offer for the same of up to Rs 375 crore. Warburg Pincus Group is selling part of their stake worth Rs 250 crore while its promoters were offered to sell shares worth Rs 125 crore. After the issue, the promotor shareholding will reduce to 60.5% from 68%. The company has proposed to utilise the funds for funding working capital requirements and on general corporate purposes.
Kalyan Jewellers is one of India’s largest Jewellery companies. The key business activities of the company is to design, manufacture, and sell a variety of gold, studded and other jewellery products for various occasions. It has 107 showrooms located across 21 states and 30 showrooms located in the Middle East.
Kalyan Jewellers has faced headwinds in the past couple of years. In FY19, Kalyan’s revenues were impacted owing to severe floods in south India while revenue in FY20 was adversely impacted in March quarter owing to Covid-led lockdowns.
Private equity giant, Warburg Pincus invested around Rs 1,700 crore in two tranches in the company. It paid Rs 1200 crore in 2014 and Rs 500 crore in 2017 for a overall stake of 24 percent stake in the firm.
