 "Kalyan Jewellers shares rally 8% as promoter inks pact to increase stake")
Kalyan Jewellers shares rise: Kalyan Jewellers stock surged up to 7.61 per cent at Rs 589.90 a piece on the BSE in Thursday’s intraday deals, after the company’s promoter TS Kalyanaraman plans to increase his stake in the company.
On Wednesday, the company said that a special purchase agreement (SPA) has been signed between Kalyanaraman and Highdell Investment, in which the promoter seeks to increase his equity holding by 2.36 per cent, purchasing shares from Highdell Investment at Rs 535 each, aggregating to Rs 1,300 crore.
His stake will rise from 21 per cent to 23.36 per cent, raising the combined shareholding of the promoter and promoter group from 60.59 per cent to 62.95 per cent, the company said in an exchange filing.
“The Transaction is subject to promoter arranging requisite funds through financing to consummate the transaction. The company is not a party to the SPA,” the company added.
As of the quarter ending June, Highdell, a US private equity firm, held a 9.2 per cent stake in Kalyan Jewellers, according to BSE data. A Warburg Pincus affiliate, Highdell, which initially invested in Kalyan in 2014, owned a 24.6 per cent stake following the jeweller's March 2021 listing.
Kalyan Jewellers reported a 27 per cent year-on-year increase in consolidated revenue for April-June quarter of financial year 2024-25 (Q1FY25), reaching Rs 4,376 crore. This growth was fueled by strong performances in both Indian and Middle Eastern markets.
Revenue in India grew by 29 per cent, with a 12 per cent increase in same-store sales, while the Middle East contributed 16 per cent to the total revenue. During the April-June period, the company opened 13 new FOCO showrooms in India and saw a 13 per cent revenue increase from its digital platform, Candere.
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For FY2025, Kalyan plans to launch over 130 new showrooms, including 40 in India, about 30 Candere showrooms, and its first US showroom by Diwali. The company is optimistic about the upcoming festive and wedding seasons.
At 11:23 AM; the stock of the company was trading 5.61 per cent higher at Rs 578.90 per share on the BSE. By comparison, the BSE Sensex was up by 0.17 per cent at 80,071 levels.