IPO News | Kalyan Jewelers filed a document with SEBI

 

Kalyan Jewelers, a leading jewellery sector company, is planning an IPO. For this, the company has filed a draft Red Hearing Prospectus (DRHP) with capital market regulator SEBI. Through this, the company plans to raise Rs 1,750 crore. According to DRHP, the IPO will have a fresh issue of Rs 1,000 crore and Rs 750 crore will be under Offer for Sale. The offer will be from promoters TS Kalyanraman and Hydel Investment. Kalyanraman will sell shares worth Rs 250 crore while Hydel will sell shares worth Rs 500 crore. The funds raised through the fresh issue will be used by the company for the needs of working capital and for general corporate purposes.

 

The promoters currently hold 76 per cent stake in the company. While Warburg holds a 24 per cent stake. Warburg invested Rs 1,200 crore in Kalyan Jewelers in 2014. After this, in 2017 it had imposed another 500 crore rupees. The company's revenue in the quarter of March 2020 was Rs 10,101 crore, an increase of 3.3 per cent from a year earlier. While the company had a net profit of Rs 145 crore, a 4.87 times increase compared to a year ago. As of June 2020, the company had 107 showrooms in the country while the Middle East countries had 30 showrooms.

 

Kalyan Jewelers filed with SEBI comes at a time when the jewellery sector, already set up due to the outbreak of coronavirus, is betting for a complete revival for the wedding and festive season. Gold prices have also risen since reaching a record high of around Rs 56,200 on August 7, 2020. On the other hand, shares of listed companies in segments such as Titan, Vaibhav Global and Renaissance Global have gained momentum in the last three months. So far some companies like Titan, TBZ of the jewellery sector in the country are listed on the stock market. Among the branded companies, Kalyan Jewellers is a large company preparing for listing. However, its net profit has increased 4.87 times in a year, which could be a staggering figure. In recent times, dozens of companies have been approved by SEBI for IPOs, but all these IPOs have been halted due to lockdown and deteriorating market conditions.