Kalyan Jewellers IPO opens tomorrow. All you need to know

As the minimum application size is ₹14,964 at the higher end of the price band, investors can bid for a minimum of 172 shares and multiples of 172 shares thereafter.

Kalyan Jewellers India's ₹1,175 crore initial public offering (IPO) will open for subscription on Tuesday with the issue price fixed at ₹86-87 per share. The IPO, which is backed by Warburg Pincus, comprises a fresh issue of ₹800 crore and an offer for sale amounting to ₹375 crore. The IPO will close on March 18. Kalyan Jewellers is one of the biggest jewellery names in India and counts Bollywood actors like Amitabh Bachchan and Katrina Kaif among its brand ambassadors.

According to the company’s statement, proceeds from the IPO will be utilised to fund the working capital requirements of the company and for general corporate purposes. (AP/ Representational)

Here’s everything you need to know about Kalyan Jewellers India’s IPO:

1. As the minimum application size is ₹14,964 at the higher end of the price band, investors can bid for a minimum of 172 shares and multiples of 172 shares thereafter.

2. Fifty per cent of the issue size has been reserved for qualified institutional buyers (QIB), 15 per cent is for non-institutional investors and the remaining 35 per cent is for retail investors.

3. The company’s promoter TS Kalyanaraman will also sell shares worth ₹125 crore, and investor, Highdell Investment, will sell shares worth ₹250 through an offer for sale.

4. The company has also reserved ₹2 crore worth of shares for its employees.

5. According to the company’s statement, proceeds from the IPO will be utilised to fund the working capital requirements of the company and for general corporate purposes.

6. Citigroup Global Markets, Axis Capital, ICICI Securities, SBI Capital Markets and BOB Capital Markets are the book running lead managers to the issue.

7. The company reported a profit of ₹142.27 crore for the year ended March 2020 against a loss of ₹4.86 crore in the previous financial year; and a profit of ₹141 crore in the financial year 2018.

8. Kalyan Jewellers, which was started in 1993 with a single showroom in Kerala, has expanded to have a countrywide presence with 107 showrooms across 21 states and union territories in India. The company also boasts of an international presence with 30 showrooms in the Middle East.