This would be one of the largest IPOs by an Indian jeweller
Chennai: Kalyan Jewellers has filed a draft red herring prospectus (DRHP) with SEBI to raise Rs 1750 crore through an initial public offering that could be one of the largest in the jewellery retail segment.
The company will offer equity shares of face value of Rs 10 each aggregating to Rs 1750 crore, comprising a fresh issue of Rs 1000 crore and an offer for sale of Rs 750 crore, comprising up to Rs 250 crore by promoter T S Kalyanaraman and up to Rs 500 crore by Highdell Investment, a portfolio company of Warburg Pincus.
The net proceeds from the fresh issue will be utilized towards working capital requirements and general corporate purposes.
The Kerala-based company has a pan-India presence with 107 showrooms across 21 states and union territories in India as well as 30 showrooms in the Middle East.
The promoters currently hold 76 per cent stake in the company while 24 per cent is held by Warburg Pincus. Warburg Pincus had invested Rs 1200 crore in Kalyan Jewellers in 2014 and then another Rs 500 crore in 2017.
In FY20, revenue from operations of Kalyan Jewellers stood at Rs. 10100 crore, of which 78.19 per cent was from India and 21.81 per cent from the Middle East.
The global coordinators and book running lead managers are Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets. The book running lead manager to the IPO is BOB Capital Markets.