Kalyan Jewellers files for Rs 1,750-cr IPO in largest offer in its sector

Kalyan Jewellers is one of the largest jewellery companies in India based on revenue as of March 31, 2020, according to Technopak report.
Kerala-based Kalyan Jewellers India has filed its offer document with the Securities and Exchange Board of India (Sebi) for a Rs 1,750-crore initial public offering (IPO). 

The issue comprises fresh fundraise of Rs 1,000 crore and Rs 750-crore secondary share sale by promoter T S Kalyanaraman and private equity firm Warburg Pincus. This IPO will be the  biggest by a jewellery retail brand in the domestic market.

Axis Capital, Citibank, ICICI Securities, SBI Caps, and BoB Capital Markets are the investment bankers handling the issue. Kalyan Jewellers plans to use Rs 1,000 crore to fund its working capital and for other corporate purposes.

The company started in 1993 with a single showroom at Thrissur, Kerala, and now has 107 stores across 21 states and Union Territories in India. It also has 30 showrooms located in West Asia. The stores are operated and managed by the company. 

In FY20, revenue from operations of Kalyan Jewellers stood at Rs 10,100 crore, of which 78.19 per cent was from India, and 21.8 per cent was from West Asia. Its closest rival is Titan’s Tanishq. 

Tanishq jewellery brand has the highest store presence, with 250-plus stores in India and abroad. Another listed firm PC Jewellers has about 84 stores.

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