Kerala-headquartered Kalyan Jewellers initial public offer (IPO) will be open for subscription on March 16. The jeweller is expected to raise Rs 1,175 crore through the IPO. The offer will close on March 18.
The pre-IPO bid for anchor investors will take place on March 15. The price band of the IPO is around Rs 86-87 per piece. The bid lot is around 172 shares and in multiple thereafter.
The primary issue may be around Rs 800 crore and the offer for sale shares will be worth Rs 375 crore, informed a person familiar with the matter.
Company promoter TS Kalyanaraman is expected to offload shares worth up to Rs 250 crore. While he owns 27.41 per cent in the company, his sons TK Seetharam and TK Ramesh own 22.17 percent stake each (as of November 2020). New York-based private equity firm Warburg Pincus has 24 per cent share in the company. The PE firm had invested around Rs 1,200 and Rs 500 in 2014 and in 2017 respectively.
The total income of the company as of FY 2020, FY 2019 and FY 2018 is at Rs 10,181 crore, Rs 9,814 crore and Rs 10,580 crore respectively.
The founder and one of the promoters of the chain is T S Kalyanaraman, who has over 45 years of retail experience, of which over 25 years is in the jewellery industry. It started a jewellery business in 1993 with a single showroom in Thrissur, Kerala. Today, the jeweller has expanded to become a pan-India jewellery company, with 107 showrooms located across 21 states and union territories in India, and also has an international presence with 30 showrooms located in the Middle East as of June 30, 2020.
As of March 31, 2020, the jewelers has Rs 1, 553.5 crore of contingent liabilities which includes disputed sales tax demands, disputed service tax, credit to banks among others.