Kalyan Jewellers ₹1,175-cr IPO to open on Mar 16. Here’s what you need to know

Kalyan Jewellers was started in 1993 by TS Kalyanaraman in Kerala.

Kalyan Jewellers India Limited will start its three-day initial public offering (IPO) on March 16 in a bid to raise ₹1,175 crore. Kalyan Jewellers filed preliminary papers for IPO in August last year and obtained the Securities and Exchange Board of India’s (Sebi’s) nod in October. The IPO by Kalyan Jewellers comes as gold consumption is set to rebound this year in India after plunging to the lowest in more than 20 years in 2020.

The three-day public issue of Kalyan Jewellers would conclude on March 18.

Here is all you need to know about Kalyan Jewellers IPO:

1. Kalyan Jewellers, which was started in 1993 by TS Kalyanaraman in Kerala, has fixed a price band of ₹86-87 a share for its ₹1,175 crore-initial share-sale.

2. The three-day public issue of Kalyan Jewellers, which has Bollywood actors Amitabh Bachchan and Katrina Kaif among its brand ambassadors, would conclude on March 18 and the bidding for anchor investors would open on March 15.

3. Kalyan Jewellers’ IPO comprises issuance of fresh equity aggregating up to ₹800 crore and an offer for sale (OFS) worth ₹375 crore.

4. Kalyan Jewellers' promoter Kalyanaraman will be offloading shares worth up to ₹125 crore and Highdell Investment Ltd, an affiliate of Warburg Pincus, would sell up to ₹250 crore worth of shares through the OFS route.

5. Half of the issue is reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders.

6. The jeweller plans to use the proceeds from the fresh issue of shares for working capital requirements and general corporate purpose.

7. Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets are the global co-ordinators and book running lead managers to the offer.

8. According to the prospectus, the stock is expected to start trading on exchanges from March 26.

9. Kalyan Jewellers will compete with some of the biggest listed rivals in India such as Tata Group’s Titan Co, Tribhovandas Bhimji Zaveri Ltd and PC Jeweller Ltd after the listing.

10. The company had 107 showrooms across 21 states and Union territories in India and 30 showrooms in the Middle East at the end of June 2020.

(With agency inputs)