Known Indian jewellery brand Kalyan Jewellers has filed DRHP (draft red herring prospectus) seeking approval to launch IPO scrips in domestic bourses. In its filing, the company said that it is looking to raise Rs 1,750 crores from the market. The offer will contain fresh scrips worth Rs 1000 crores and offer for sales scrips of Rs 750 crores. It is so far the largest IPO launch for any Indian Jewellery brand.
The jewellery brand is based in Kerala but has PAN India presence with 107 shops across Indian cities. It is owned by promoter T S Kalyanaraman and Highdell Investment, a private equity firm backed by Warburg Pincus.
Kalyanaraman currently owns 27.41 percent share in the company and his sons, K Seetharam and TK Ramesh, each own 22.17 percent. Amongst themselves, the promoters control 76 percent stakes in the company. Warburg Pincus owns the rest.
Warburg Pincus, the NY based private equity firm, first invested in the company in 2014. In the first instalment, the investors put in Rs 1,200 crores funds. In 2017, it invested an additional capital of Rs 500 crores. The promoters are looking to reduce their share burden through an offer for sales route.
The IPO offer will contain Rs 250 crores shares from Kalyanaraman and Rs 500 crores shares of Warburg Pincus.
Things to know about Kalyan Jewellers IPO
- The company started in 1993 in Kerala. It has since expanded rapidly to get PAN India presence with more than 130 showrooms in India and Gulf countries.
- It is one of the largest retail jewellers dealing in gold and diamond jewellery.
- The company will launch its IPO shares at a face value of Rs 10, aiming to raise Rs 1,750 crores from the market. The price band will be declared soon.
- The firm will invest in bolstering its working capital funds and also to meet its general corporate expenses.
- Kalyan Jewellers shares will list in both BSE and NSE.
- AXIS, ICICI, and UBS are likely to assist the company as their merchant banks in managing the IPO offer. But there is no confirmation yet on this matter.
- Same is with the date. Confirmation on Kalyan Jewellers IPO date will come with the publication of the prospectus.
The Kalyan Jewellers IPO launch is going to be the biggest retail share offer since 2017. In the last financial year of 2019-20, Kalyan Jewellers registered revenue earning of Rs 10,100 crores, a modest rise of 3.73 percent from the year before. A significant 78 percent of revenue came from its sales in India, and the rest came from its showrooms located abroad.