Private equity firm Warburg Pincus on Thursday sold its 6.81 per cent stake in Kalyan Jewellers via block deal on stock exchanges and the remaining 2.36 per cent stake will be acquired by promoter TS Kalyanaraman. The company had 9.17 per cent stake in Kalyan Jewellers as on June 30, 2024 through its affiliate Highdell Investment. It held the stake since 2014.
Post this, Warburg Pincus will completely exit from Kalyan Jewellers.
TS Kalyanaraman will acquire the 2.36 per cent shares from Warburg Pincus’ holding for Rs 1,300 crore. A Share Purchase Agreement was executed yesterday between the promoter and Warburg Pincus’ affiliate, Highdell Investment Ltd, at a price of Rs 535 per share. This transaction will increase the promoter and promoter group’s shareholding in Kalyan Jewellers from 60.59 per cent to 62.95 per cent.
The acquisition, it said, is expected to close within the next four weeks, following the completion of financing arrangements. The transaction will be executed as an off-market deal in accordance with the purchase agreement.
In a regulatory filing, Kalyan Jewellers said, “We wish to inform you that basis an intimation dated August 21, 2024 received from Mr. Trikkur Sitarama Iyer Kalyanaraman (Promoter), a share purchase agreement (SPA) has been executed on August 21, 2024 between Highdell Investment Ltd (Highdell), and the Promoter of Kalyan Jewellers India Limited (Company).”
Commenting on the same, TS Kalyanaraman, Promoter & Managing Director of Kalyan Jewellers, said, “Warburg Pincus has played a crucial role in Kalyan Jewellers’ growth and expansion across India and the Middle East. The private equity firm initially held a 30 per cent stake in the company prior to its IPO. Over time, they have reduced their shareholding as part of a strategic exit plan. This transaction represents the final step in their planned divestment process. We are grateful for our partnership with Warburg Pincus, which has been a driving force behind many of our achievements over the past decade.”