Markets regulator Sebi has sought clarification from merchant bankers of the proposed initial public offering of Kalyan Jewellers India, which last month filed draft papers to raise an estimated Rs 1,750 crore.

The proposed IPO comprises issuance of fresh equity aggregating up to Rs 1,000 crore and an offer for sale (OFS) worth Rs 750 crore, according to the Draft Red Herring Prospectus (DRHP).

In an update on Friday, the regulator said it is awaiting response to the clarification sought on September 11 from the lead manager of the public issue.

However, details of the clarification sought for the IPO could not be ascertained.

The proceeds from the fresh issue of shares would be utilised for working capital requirements and general corporate purpose.

Kalyan Jewellers' promoter T S Kalyanaraman would be offloading shares worth up to Rs 250 crore, while Highdell Investment Ltd would sell up to Rs 500 crore worth of shares through the OFS route.

At the end of June this year, the company had 107 showrooms across 21 states and Union Territories in India, and 30 showrooms in the Middle East.

Kalyan Jewellers designs, manufactures and sells a wide range of gold, studded and other jewellery products.

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.

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Free Press Journal