SEBI (The Securities and Exchange Board of India) has given Kerala based Kalyan Jewellers India Ltd a nod to raise an estimated Rs 1,750 crore through an initial public offering (IPO). It will be the biggest retail IPO since 2017. SEBI observed the draft papers on October 15, which were filed by Kalyan Jeweller in August and SEBI gave a go-ahead on Monday.
According to the Draft Red Herring Prospectus (DRHP), IPO comprises issuance of fresh equity aggregating up to Rs 1,000 crore and an offer for sale (OFS) worth Rs 750 crore. The proceeding of which will be used for working capital requirements and general corporate purpose.
The promoter of Kalyan Jewellers, T S Kalyanaraman has offered a part of his holding to raise Rs 250 crore, while Highdell Investment Ltd, which owns 24% stake in the jeweller, will sell Rs 500 crore worth of shares through the OFS.
Till June end this year, the company had 107 showrooms across 21 states and UT (Union Territories) in India, and 30 showrooms in the Middle East across UAE, Qatar, Kuwait and Oman. The first jewellery showroom was established in 1993 in Thrissur, Kerala, India with an initial capital of ₹7.5 million and Kalyan Jewellers is one of the largest jewellery manufacturer distributors in India. It manufactures, designs and sells a wide range of gold, studded and other jewellery products.
Axis Capital, ICICI Securities, Citigroup Global Markets India and SBI Capital Markets are the global co-ordinators and book running lead managers to the offer.