Shares of Kalyan Jewellers India were trading at Rs 80.3 at 10:08 IST on the BSE, a discount of 7.7% over the initial public offer (IPO) price of Rs 87.
The stock was listed at Rs 73.9, a discount of 15.06% to the IPO price. So far, the stock hit a high of Rs 80.9 and low of Rs 73. On the BSE, 12.63 lakh shares were traded on the counter so far.The IPO of Kalyan Jewellers India was subscribed 2.61 times. The issue opened for bidding on 16 March 2021 and closed on 18 March 2021. The price band for the IPO was set at Rs 86-87 per share.
The qualified institutional buyers (QIBs) category was subscribed 2.76 times. The retail individual investors category was subscribed 2.82 times. The non-institutional investors category was subscribed 1.91 times.
The issue comprised of equity shares aggregating up to Rs 1175 crore, which comprises of a fresh issue of up to Rs 800 crore and an offer for sale (OFS) of up to Rs 375 crore.
The OFS comprises of sale of equity shares worth Rs 125 crore by one of the promoters T.S. Kalyanaraman and sale of equity shares worth Rs 250 crore by an investor shareholder Highdell Investment. The post issue promoter's shareholding in the company would decline to 60.53% from 67.99% while that of Highdell would fall to 26.36% from 32.01%.
Ahead of the IPO, the company on 15 March 2021 finalised allocation of 4,04,48,275 equity shares to anchor investors at Rs 87 per share, aggregating to Rs 351,89,99,925.
The company proposes to utilise Rs 600 crore from the net proceeds from fresh issue of equity shares to fund its working capital requirements and rest for the general corporate purpose. The company expects that listing of the equity shares will enhance visibility and brand image and provide liquidity to shareholders.
Kalyan Jewellers is one of the largest jewellery companies in India in terms of revenues. The company was established by the founder and one of the Promoters T.S. Kalyanaraman in 1993 with a single showroom in Thrissur, Kerala. The company has since expanded to become a pan-India jewellery company, with 107 showrooms located across 21 states and union territories in India, and also have an international presence with additional 30 showrooms located in the Middle East as of 31 December 2020. All of the showrooms are operated and managed by the company.
The company designs, manufactures and sells a wide range of gold, studded and other jewellery products across various price points ranging from jewellery for special occasions, such as weddings, which is the highest-selling product category for the company, to daily-wear jewellery.
On a consolidated basis, the company reported a net loss of Rs 80.49 crore and revenue of Rs 5516.70 crore in the nine months ended on 31 December 2020.
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