Skip to main content

Warburg Pincus-backed Kalyan Jewellers revives IPO plans, may file for Rs 1,600-1,800 crore offer by August-end

The company has started work on the IPO and is likely to file its DRHP with Sebi by August-end or early September

 

Kalyan Jewellers, the leading Kerala-based jewellery retail firm backed by private equity giant Warburg Pincus, has revived plans to debut on Dalal Street by launching a Rs 1,800 crore initial public offering (IPO).

The company has started work on the IPO and is likely to file its DRHP (draft red herring prospectus) with market regulator Sebi by August-end or early September, people familiar with the matter told Moneycontrol. The decision comes on the back of a gradual recovery in demand in the domestic jewellery sector after the pounding from the COVID-19 outbreak.

The IPO hiatus in the markets due to the coronavirus lockdown ended on July 23 when speciality chemicals firm Rossary Biotech made a blockbuster stock market debut.

“Kalyan Jewellers is looking to raise around Rs 1,600-Rs 1,800 crore through a mix of primary and secondary issue of shares. Their numbers as of March are healthy. With the organised jewellery sector slowly heading towards normalcy, this has given confidence to the firm,” one of the persons cited above told Moneycontrol. The firm had evaluated an IPO in early 2018 but deferred those plans.


“Axis Capital, Citi, ICICI Securities and SBI Capital are the investment banks working on the IPO for Kalyan Jewellers. The listing will provide a partial exit to Warburg Pincus and will also facilitate debt reduction,” a second person said.

A third person said January to March 2021 would be an ideal window to launch the Kalyan Jewellers IPO after securing the requisite approvals. "If the plans fructify and are successful, it could enthuse peers like Joyallukas and Malabar Jewellers to evaluate the listing route.”

All the three individuals spoke to Moneycontrol on the condition of anonymity. Moneycontrol has sent reminders and is awaiting an email response from Kalyan Jewellers. Warburg Pincus and Citi declined to comment and Moneycontrol is awaiting replies from Axis Capital, ICICI Securities and SBI Capital.

Kalyan Jewellers: Prospects shinier now?

Warburg Pincus has collectively invested around Rs 1,700 crore in two tranches in Kalyan Jewellers in lieu of an undisclosed minority stake. Its initial investment of Rs 1,200 crore in 2014 was the biggest private equity investment ever in the jewellery sector in India, followed by a second smaller round of Rs 500 crore in 2017.

According to a report released by rating agency ICRA in September 2019, Warburg Pincus has a 30 percent stake in the jewellery firm. Kalyan Jewellers had an operating income of Rs 7,454 crore and a profit after tax (PAT) of Rs 50 crore in FY19, the report said.

Kalyan Jewellers has over 135 showrooms across 19 states and two Union Territories and also has an online brand called ‘Candere by Kalyan Jewellers’. The firm is present in five countries, including the Middle East region, and has over 750 ‘My Kalyan’ stores in India, which function as customer touch points and feeders to the showrooms.

Gold prices have hit record highs in recent weeks due to a spike in demand for safe assests on the back of a weaker dollar and rising COVID-19 cases.

The top five stocks in the gems and jewellery sector, based on market capitalisation (with the exception of Rajesh Exports), have surged sharply since the beginning of the nationwide lockdown.

This signals a slow restoration to pre COVID-19 levels in terms of demand, footfalls and sales. The likes of Vaibhav Global, PC Jewellers, Renaissance Global and Titan have seen their stock prices rising by 105 percent, 84 percent, 40 percent and 27 percent, respectively.

Recently, due to the COVID-19 pandemic, the government extended the deadline for mandatory hallmarking of gold jewellery and artefacts by four months till June 1, 2021. Hallmarking is a purity certification and will introduce standardisation in the market. Jewellers have been given time by the government to shift to hallmarking and register themselves with the Bureau of Indian Standards.


Source - Moneycontrol.com
Labels:

Comments

Post a Comment

Popular posts from this blog

Panacea Biotech shares hit 5% upper circuit after dengue vaccine completes phase I & II study

DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes, the company has said in an exchange filing. Panacea Biotech share price hit 5 percent upper circuit on the BSE on September 24 after the company completed phases I and II study of its dengue vaccine candidate DengiAIl. "Panacea Biotec Ltd. is delighted to announce the successful completion of its Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose liveattenuated tetravalent vaccine," the company said in an exchange filing. Live-attenuated vaccines contain weakened bacteria or viruses that trigger an immune response but do not cause disease. The company said DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes. DengiAIl has been found to be safe and well-tolerated with no serious adverse effects, the company said. After a single-dose, more than 80 percent of the participants ...
Post a Comment
Read more

Brokerages place bets on Titan, see double-digit upside in the stock

Titan can get benefits from the strong market share in the jewellery and wrist watches segment, mainly driven by a wide range of product portfolio catering mainly to the premium and value-added designer jewellery segment. After three consecutive sessions of losses, shares of Titan Company rose over a percent in morning trade on BSE on September 23. The company was dealt a severe blow by COVID-19 as the pandemic triggered strict lockdowns completely battered the retail sector. In the calendar year so far, shares of this one of the largest, most efficient and profitable specialty retailer in India are 7 percent down. The company reported a net standalone loss of Rs 270 crore for the quarter ended June 2020 as the COVID-19 pandemic hit business. The loss was higher than a CNBC-TV18 poll estimate of Rs 175 crore. Standalone revenue during the quarter declined 62.3 percent year-on-year to Rs 1,862 crore compared to the corresponding period last fiscal. Light at the end ...
Post a Comment
Read more

Check Chemcon Speciality Chemicals IPO allotment status in four simple steps

Equity shares will get credited into the accounts of eligible investors by September 30 and the listing of equity shares will be on October 1, 2020. Chemcon Speciality Chemicals, the manufacturer for pharmaceutical and oilfields industries, is expected to announce the basis of allotment early next week. As per the schedule provided by the company, the finalisation of the basis of the allotment will be done by September 28 and the initiation of refunds or unblocking of funds from ASBA account will take place on September 29. Equity shares will get credited to the accounts of eligible investors by September 30 and the listing will be on October The IPO comprised a fresh issue of Rs 165 crore and an offer for sale of Rs 153 crore by promoters. The company will utilise fresh issue proceeds for expansion of manufacturing facility, working capital requirements, and general corporate purposes. Chemcon manufactures specialised chemicals, such as Hexamethyldisilazane (HMDS) and Chloromethyl Iso...
Post a Comment
Read more