MUMBAI: Kalyan Jewelers, backed by Warburg Pincus, have set a price range of 86 to 87 rupees per share for their IPO, which opens for subscription on March 16. The IPO, which accounts for 13% of Kalyan’s full stake in diluted equity, puts the retail jeweler at Rs 8,961 at the high end of the price range.
The offer, a combination of a reissue of shares and partial sale of shares by founder TS Kalyanaraman and investor Warburg, ends on March 18, raising Rs 1,175 crore from the initial public offering. It originally planned to pool Rs 1,750 from public investors, but reduced its IPO size due to adverse market conditions.
Kalyan’s will be the largest IPO in the consumer retail segment, following the Rs.1,870 billion D-Mart issue in 2017. The jeweler, which began operations in Thrissur, Kerala, in 1993, plans to use the proceeds from the IPO to meet working capital needs, debt reduction and other corporate purposes. Kalyan had a debt of 3,667 billion rupees as of December 30, 2020.
The last time a pure jeweler went public was in 2012 when PC Jeweler entered the primary market with an issue of 600 rupees. Kalyan’s IPO price is higher than Warburg’s exchange price as of March 4th. Warburg converted Kalyan’s preferred stock into shares at Rs 51apiece. Warburg will hold 26% of Kalyan after the IPO, while the founder will hold 61%.
Kalyan, which now has 107 stores in India and 30 showrooms in the Middle East, posted a loss of Rs 799 billion on sales of Rs 5,550 billion in the nine months of fiscal 2021.