Kalyan Jewellers is all set to sell its first stake in the public market with a target of raising Rs.1750 crores. The application has been submitted to the Security and Exchange Board of India. There are indications that the permission will be granted in 2 months.
This is the largest share sale through IPO in the retail sector in the country in 3 years. Eight years age PC Jewellers sold Rs.600 crore worth of shares, making it the largest stockholder in the country to hit the gold retail trade. This is the first time in Kerala that a company has sought permission to sell shares for such a huge amount. Leading investor Warburg, a subsidiary of Pincas had invested Rs.1700 crore in Kalyan through Hydel investment. The investment was 1200 crore in 2014 and 500 crores in 2017. With this Hydel has a 24% stake in Kalyan. Raised 1000 crores will be used for the development of the company. In that IPO issue, 1000 crores worth will be new shares and Hydel is seeking to sell 500 crores, and Rs.250 crores by T.S Kalyana Raman led promotor group.
Kalyan jewellers, one of the largest jewelry chains in the country launched in 1993. It has 107 showrooms in 21 states and 750 My Kalyan customer centers. In last year its turnover was 10000 crore. Returning after lockdown, Kalyan opened most of the showrooms in the country and made significant gains. In 2019-20, Kalyan Jewellers revenue from operations of stood at Rs 10,181 crore, a modest increase of 3.73 percent from previous year’s Rs 9,814 crore. Kalyan Jewellers also reported a profit of Rs 142.27 crore as compared to a loss of Rs 4.86 crore in 2018-19.
So far 41 companies from Kerala entered the primary market for IPO. Last year Catholic Syrian Bank had issued IPO and it was the highest IPO issue. It raised Rs.410 crore from it. Many companies from Kerala, including financial institutions and retail companies, are preparing to enter the IPO market soon. Axis Capital, Citigroup Global Markets India, ICICI Securities, and SBI Capital Markets are the major global coordinators and book running lead managers to the IPO.
