InvestorQ : Can you tell me about the Kalyan Jewellers IPO and what is your view about investing in the Kalyan Jewellers IPO?
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Can you tell me about the Kalyan Jewellers IPO and what is your view about investing in the Kalyan Jewellers IPO?

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1 month ago
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Here are some key factors you need to understand about the Kalyan Jewellers IPO ahead of the issue opening.

· The Kalyan Jewellers IPO will open for subscription on 16 March and will close for subscription 3 days later on 18 March.

· The company has fixed its IPO price band at Rs.86-87. With the current retail appetite for Indian IPOs, one can safely expect the upper band pricing.

· The total IPO size will be for Rs.1,175 crore which will consist of Rs.800 crore as fresh issue and Rs.375 crore as offer for sale or OFS.

· Warburg Pincus, an early-stage investor in Kalyan Jewellers, and the promoter T Kalyan Raman, will partially exit their stake in Kalyan Jewellers.

· In terms of allocation of the issue, 50% will be reserved for QIBs, 35% will be for retail investors and the balance 15% for non-institutional HNIs and corporates.

· It may be recollected that when the original filing was done, Kalyan had planned a much bigger IPO of close to Rs.1,800 crore but this had to be subsequently scaled down.

· Kalyan Jewellers has a well spread-out network of 107 showrooms across 21 states and union territories in India apart from the Middle East.

· Kalyan gets 35% of its revenues from South India, 30% from the Middle East region and the balance from the rest of India. Non-south revenues are more profitable for Kalyan.

· As a manufacturer and designer of a range of gold, studded and jewellery products, the company needs heavy deployment of working capital. Hence, the issue will be used for working capital purposes to reduce short term debt in the working capital cycle.

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