The offer, a combination of fresh issue of shares and a partial sale of shares by founder T S Kalyanaraman and investor Warburg, will close on March 18. Kalyan, the latest to join the primary market rush that has continued into this calendar year, plans to raise Rs 1,175 crore from the IPO. It had initially planned to pool Rs 1,750 crore from public investors, but reduced its IPO size due to unfavourable market conditions.
Kalyan’s will be the biggest IPO from the consumer retail segment after D-Mart’s Rs 1,870-crore issue in 2017. The jeweller, which started its operations in Thrissur, Kerala, in 1993, plans to use the proceeds from the IPO for working capital requirements, debt reduction and other corporate purposes. Kalyan had a debt of Rs 3,667 crore as on December 30, 2020.
The last time a pure-play jeweller launched an IPO was in 2012 when PC Jeweller hit the primary market with a Rs 600-crore issue. Kalyan’s IPO price is higher than Warburg’s share conversion price as on March 4. Warburg converted Kalyan’s preference shares into equity ones at Rs 51apiece. Warburg will own 26% in 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, reported a loss of Rs 799 crore on a revenue of Rs 5,550 crore during the nine months of fiscal 2021. Performance was impacted mainly due to business restrictions induced by the pandemic.