Kalyan Jewellers shares drop 9% after 2.8 crore shares changes hands in a block deal

CNBC-TV18 had reported on Monday citing sources that Highdell Investment, a Warburg Pincus unit planned on selling 2.5 percent stake in Kalyan Jewellers through a block deal.

The floor price of the proposed deal was set at Rs 110 per share, which was a 7.4 percent discount to Monday's closing price.

As of the December quarter shareholding pattern, Highdell Investment held 26.36 percent stake in the company. Post this transaction, there will be a 60-day lock-in period for the sale of further shares.

Kalyan Jewellers saw greater growth from the non-south markets in the December quarter due to greater number of showrooms launched over the last 12 months. The management said that momentumin footfalls was broad-based across geographies. It also added five new showrooms during the December quarter, taking the total number of showrooms in India to 136.

The company also expects to open 11 new franchised showrooms in the non-south market over the next three months, as part of the targeted launch of 52 new showrooms in 2023. It has also signed more than 25 Letters of Intent with potential franchise partners for showroom launches in the next financial year.

Shares of Kalyan Jewellers are currently trading 9 percent lower at Rs 108.40.