Kalyan Jewellers’ IPO on cards; SEBI approves Rs 1,750 crore initial public offering

By: |
October 19, 2020 4:20 PM

From the Rs 750 crore OFS, the company will not receive any receipts, however, proceeds from the fresh issue will be used for the funding of working capital requirements of the company and for General corporate purposes.

The estimated Rs 1,750 crore IPO of Kalyan Jewellers would consist of a fresh equity issue of Rs 1,000 crore and an offer for sale (OFS) of worth Rs 750 crore.

Kalyan Jewellers India has received a nod from Securities and Exchange Board of India (SEBI) to float its initial public offering (IPO), news agency PTI reported. The estimated Rs 1,750 crore IPO of Kalyan Jewellers would consist of a fresh equity issue of Rs 1,000 crore and an offer for sale (OFS) of worth Rs 750 crore, according to the Draft offer document. Through the OFS, 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.

According to the report, Kalyan Jeweller received SEBI’s observations on October 15. The company had filed its documents with the capital markets regulator back in August this year. From the Rs 750 crore OFS, the company will not receive any receipts, however, proceeds from the fresh issue will be used for the funding of working capital requirements of the company and for General corporate purposes. Prior to the offer, T S Kalyanaraman a 27.41% stake in the company while T K Seetharam and T.K Ramesh the other two promoters 22.17% stake in the company each. Highdell, the investor that will sell its stake through the OFS has a 24% stake in the company pre-offer.

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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. At the end of March this year, Kalyan Jewellers had a total income of 10,181 crore which was up from 9,814 crore at the end of financial year 2019. Total borrowings at the end of the last fiscal year were at Rs 3,640 crore.  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. SEBI, last month, had sought clarification from the merchant banker regarding the company’s public issue.

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