Kalyan Jewellers Files DRHP With Sebi For Rs. 1750 Crore IPO

Kalyan Jewellers, Kerala-based gold jewellery retailing company, today filed its draft red herring prospectus (DRHP) with the SEBI for Rs. 1750 crore initial public offer (IPO).

Through the issue, the company plans to mobilize Rs. 1000 crore via issuance of fresh equity, while its promoter Kalyanaraman and PE firm Warburg Pincus will sell shares amounting to Rs. 250 crore and Rs. 500 crore, respectively.

Kalyan Jewellers Files DRHP With Sebi For Rs. 1750 Crore IPO

The proceeds from the issue shall be put to financing working capital requirement as well as for other corporate purposes. Axis Capital, Citi and ICICI Securities are advising Kalyan Jewellers on the IPO.

As of now, Warburg Pincus has a 24% holding in firm with a total investment of Rs. 1700 crore so far. Of which a sum of Rs. 1200 crore was invested in the year 2014 and later the firm committed another Rs. 500 crore in 2017.

For the FY ending March 2020, the jeweler clocked revenue from operation at Rs10,100.9 crore versus Rs. 9770 crore it reported in the earlier fiscal year. Profit for the March 2020 ended year stood at Rs. 142.2 crore in comparison to a loss of Rs. 4.8 crore in the previous year. Furthermore, 78.19% of the company's revenue in FY20 was from India and the rest came from the UAE.

"Our total showrooms have increased from 77 as of March 31, 2015 to 137 showrooms as of June 30, 2020, and we intend to continue to open additional showrooms as we expect significant opportunity for further penetration in our existing markets as well as in new markets, primarily in India," the company's prospectus said.

Kalyan Jewellers with its founder Kalyanaraman established its jewellery business in the year 1993. The company has a pan-India network of 107 retail stores situated across 21 states and UTs. Also the company has international presence with 30 showrooms in the Middle East. Furthermore, the company is into online sale of its jewellery via the platform 'candere'.
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