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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel