Kalyan Jewellers IPO opens on March 16, all you need to know
Ahead of the IPO, the shares were quoting at a premium of Rs 7.5 or close to 9% in the grey market.
Warburg Pincus-backed Kalyan Jewellers Rs 1,175 crore initial public offering (IPO) is set to hit the streets on March 16. The public offer comprises a fresh issue of equity shares worth Rs 800 crore and offer-for-sale (OFS) worth Rs 375 crore by promoters and shareholders. Promoters will sell Rs 125 crore worth of shares while the private equity investor, Warburg Pincus will sell Rs 250 crore worth of shares.
Ahead of the IPO, the shares were quoting at a premium of Rs 7.5 or close to 9% in the grey market. “Except Titan in listed space, most of the jewellery stocks are underperforming. On the financial front, growth looks tepid while the valuations looks expensive,” said grey market tracker Abhay Doshi, Founder, UnlistedArena.com.
Here are key things to know before subscribing to the public issue:
Open and close date: The IPO of Kalyan Jewellers will open on March 16 and the issue will close on March 18. The subscription for anchor investors opened on March 15.
Issue size: The Kerala-based jeweller plans to raise Rs 1,175 crore through the public listing of shares. The public offer comprises a fresh issue of equity shares worth Rs 800 crore and offer-for-sale (OFS) worth Rs 375 crore by promoters and shareholders. Promoters will sell Rs 125 crore worth of shares while the private equity investor, Warburg Pincus will sell Rs 250 crore worth of shares. The company will be issuing 9,19,54,124 as fresh equity shares and 4,31,03,448 shares as OFS (total 13,50,57,572 shares).
Price band: The price band for Kalyan Jewellers IPO has been fixed at Rs 86-87 per share.
Lot size: Investors can bid for a minimum of 172 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,964 at the higher end of the price band. A retail investor can at max apply for 13 lots or 2,236 shares for 1,94,532.
Objective of issue: The company intends to use net proceeds to meet working capital requirements and general corporate purposes.
About the company: Kalyan Jewellers India Ltd. (KJIL) is one of the largest jewellery companies in India. It has become a pan-India jewellery company, with 107 showrooms located across 21 states and union territories in India, and also have an international presence with 30 showrooms located in the Middle East as of December 31, 2020. All of its showrooms are operated and managed by themselves.
Financials
Based on 9M-FY2021, the issue is having a negative P/E.
What’s in it for retail investors: Half of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional bidders.
Book Running Lead Managers and Registrar to the IPO: Book Running Lead Managers (BRLMs) for this issue are Axis Capital Ltd., Citigroup Global Markets India Pvt. Ltd., ICICI Securities Ltd., SBI Capital Markets Ltd., and BoB Capital Markets Ltd. While Link Intime India Pvt. Ltd., is the registrar to the issue.
Listing of shares: The issue is likely to finalize the basis of allotment by March 23, and the initialization of funds will take place by March 24. While the credit of equity shares to depository accounts of allottee will be done on March 25. The jeweller is expected to make its stock market debut BSE & NSE on March 26, 2021.