Kerala-based Kalyan Jewellers is likely to hit the primary market in December to raise Rs 1,750 crore from the general public. The jewellery showroom chain had received SEBI's approval on October 15.
Kalyan Jewellers is one of the most anticipated IPOs to get launched as there are only few jewellery makers listed in the market. Given the robust liquidity in the current scenario coupled with favourable valuations, recent corporate earnings and trends of recovery, analysts expect a strong response for Kalyan Jewellers.
IPO size:
The IPO would consist of a fresh equity issue of Rs 1,000 crore and an offer for sale (OFS) worth Rs 750 crore, according to the DRHP.
Promoters' offloading: Through OFS, the company promoter T S Kalyanaraman would be offloading shares worth up to Rs 250 crore, while Highdell Investment would sell up to Rs 500 crore worth of its investment.
While Kalyanaraman owns 27.41 per cent in the company, the other promoters are his sons TK Seetharam and TK Ramesh own 22.17 per cent stake each in the jeweller.
The company, however, has not revealed any information on the listing date or the price band.
The book running lead managers to the IPO are Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets.
Company background: Founded in 1993, the jewellery retailer has a strong brand presence in India. In total, it has 200 plus outlets, both in India and abroad. At the end of June, 2020, the company had 107 showrooms across India and 30 showrooms in the Middle East.
Kalyan Jewellers is the biggest retail offer in the last three years. In March 2017, DMart launched its Rs 1,870 crore IPO, which was the biggest retail share offering.
Financials: In fiscal 2019-20, Kalyan Jewellers' revenue from operations stood at Rs 10,181 crore, a modest increase of 3.73 percent from previous year's Rs 9,814 crore. It also reported a profit of Rs 142.27 crore as compared to a loss of Rs 4.86 crore in 2018-19.
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