Kalyan Jewellers' Rs1,175-cr IPO subscribed 1.2 times
26 March 2021
Kalyan Jewellers which entered the market with an initial public offer of Rs1,175 crore on Tuesday, is reported to have been subscribed 1.2 times the shares on offer at the end of the second day of bidding process on Wednesday.
By 5:00 pm, the issue received bids for 11,56,77,912 shares which was 1.2 times the issue size of 9,57,09,301 shares.
The issue, priced in the range of Rs 86-87, comprises a fresh issue of Rs800 crore and an offer for sale of up to Rs375 crore
Promoter TS Kalyanaraman would sell Rs125 crore worth of shares. Besides, Highdell Investment would sell shares worth up to Rs250 crore.
At Rs 87 per share, the stock is prices at 0.9 times FY20 market cap/sales, and 63 times FY20 EPS.
In the grey market, the stock was trading in the range of Rs93-95, translating to a premium of about 8 per cent.
Kalyan Jewellers, one of India’s largest jewellery stores, entered the market with a Rs1,175 crore initial public offer (IPO), following an aggressive expansion drive that saw the jeweller opening stores across the country.
Kalyan Jewellers (KJIL) is one of India's largest jewellery companies. The key business activities of the company include designing, manufacturing, and selling a variety of gold, studded and other jewellery products focused on various occasions, such as weddings and festivals. It has 107 showrooms located across 21 states and 30 showrooms located in the Middle East.
The company proposes to utilise the funds for financing working capital requirements and for general corporate purposes.
The company has already raised Rs351.89 crore from 15 anchor investors, including Warburg Pincus and the Government of Singapore and Monetary Authority of Singapore, at the upper price band of Rs87 per share.
For the nine months period ended December 2020, Kalyan Jewellers saw consolidated revenue fall 30.7 per cent YoY as domestic business declined 24 per cent and Middle East business declined 55.3 per cent YoY, mainly due the pandemic related lockdown. EBITDA declined by 36.9 per cent YoY with 65 bps contraction in margin to 7.1 per cent. The company reported a loss at Rs80.49 crore compared to a profit of Rs94.89 crore in the same period in the previous fiscal.