Kalyan Jewellers is on track to issue Rs 1,750 crore initial public offering, the largest IPO in the metal segment sector. The company has filed the offer document with market regulator, Securities and Exchange Board of India (SEBI).
The Thrissur Kerala based jewellery showroom chain will issue a fresh fund raise of Rs 1,000 crore to fund its working capital in this COVID-19 induced pandemic. In addition, promoter T.S. Kalyanaraman will sell shares worth Rs 250 crore and private equity firm Warburg Pincus will sell shares worth Rs 500 crore.
“Our total showrooms have increased from 77 as of March 31, 2015, to 137 showrooms as of June 30, 2020, and we intend to continue to open additional showrooms as we expect a significant opportunity for further penetration in our existing markets as well as in new markets, primarily in India,” the company said in its prospectus.
In FY20, the company reported a net profit of Rs 142.2 crore in FY20 as against net loss of Rs 4.8 crore in the previous year, FY19. It is expected that the largest IPO created in the metal segment by Kalyan Jewellers is not going to be disrupted soon.
Gold and silver has become a safe haven for investors amid the volatility. On August 25th, the metal was trading at Rs 51,248 and Rs 65,470 respectively on the MCX.
Bright, beautiful, valuable and always in style…Come, choose from the best of Diamond designs! Look your bridal best in heavenly pieces from the Kalyan Jewellers Wedding Collection – Diamond Chokers, Danglers, Bracelets, Rings and so much more!#KalyanJewellers #MuhuratAtHome pic.twitter.com/LS68AMkrad
— Kalyan Jewellers (@KalyanJewellers) August 24, 2020
