InvestorQ : Can you tell me about the key highlights of the forthcoming Kalyan Jewellers IPO?
Katherine Gonsalves made post

Can you tell me about the key highlights of the forthcoming Kalyan Jewellers IPO?

rhea Babu answered.
8 months ago

Kalyan Jewellers has fixed the price of its IPO in the price band of Rs 86-87 per share for its IPO which is slated to open in the coming week. There is a virtual rush to get through with big IPO plans before the end of the fiscal year. Kalyan Jewellers will open on 16 March and will close for subscription on 18 March. Kalyan Jewellers is backed by Warburg Pincus, an internationally reputed private equity fund which has been active in India for long.

The IPO will comprise of a fresh issue portion and an offer for sale. The fresh issue will be to the tune of 9.19 crore shares amounting to Rs.800 crore. The offer-for-sale or the OFS portion will comprise of 4.31 crore shares amounting to Rs.375 crore. That will take the total size of the issue to Rs.1175 crore. The promoter T S Kalyanaraman and the investment arm of Warburg Pincus will look to partially monetize their stake in Kalyan Jewellers via the OFS.

The IPO will assign an enterprise valuation of Rs.8,962 crore to Kalyan Jewellers. The IPO price band is 72% higher than the price at which the shares were placed with Highdell, the arm of Warburg Pincus in early March this year. However, this was on account of conversion of CCPS shares and hence not entirely comparable.

Kalyan started operations in Kerala but now has 107 showrooms across 21 states and union territories. Out of the total outlets, 35 are located in South India while 30 are located in the Middle East. The non-South India operations contribute close to 58% of gross profits and 48% of its overall revenues. More than half of its revenues comes from out side the frontline tier-1 cities.