Kalyan Jewellers India’s Rs 1,175 crore initial public offering (IPO) will open for bidding on March 16. The IPO will close on March 18. The company has fixed the issue price at Rs 86-87 per share and plans to raise Rs 1,175 crore at the higher end of the price band.
The bidding for anchor investors will open on March 15.
The public issue, backed by Warburg Pincus, comprises fresh issue of Rs 800 crore and an offer for sale (OFS) amounting to Rs 375 crore. Investors can bid for a minimum of 172 shares and in multiples of 172 shares thereafter. A total of 35 per cent of the issue will be reserved for retail investors.
The company will utilise the IPO proceeds to fund its working capital requirements and for general corporate purposes.
Kalyan Jewellers was started by Kalyanaraman in Kerala in 1993. It counts Bollywood actors Amitabh Bachchan and Katrina Kaif among its brand ambassadors. Post listing, Kalyan Jewellers will compete with some of the biggest jewellery names in India such as Tata Group’s Titan, Tribhovandas Bhimji Zaveri and PC Jeweller.
Citigroup Global Markets, Axis Capital, ICICI Securities, SBI Capital Markets and BOB Capital Markets are the book running lead managers to the issue.
Should you invest in the IPO of Kalyan Jewellers IPO?
“In terms of valuations, the pre-issue TTM EV/Sales works out to 1.4 (at the upper end of the issue price band), which is low compared to Titan Company (trading at 7.7x). However, Titan company has a better financial track record compared to Kalyan Jewellers. Going forward, we believe that Kalyan Jewellers would perform better on the back of a strong brand and number of stores in India and internationally,” Angel Broking said in an IPO note to its clients.
“Thus, we recommend a ‘Subscribe’ rating on the issue, Angel Broking added.