Kalyan Jewellers IPO: For the first time after 2012, a jewelery company is going to be listed on the stock market. Prior to Kalyan Jewelers, PC Jewelers had a listing in the market. Kalyan Jewelers’ IPO will open on March 16 and will close on March 18. This company has money from Warburg Pincus. The company is in the process of raising Rs 1175 crore. The price band of Kalyan Jewelers’ IPO has been fixed at Rs 86-87 per share.
The company had earlier planned to raise Rs 1750 crore through the issue. But seeing the situation of the market, he changed his mind. Now it is set to bring an issue of Rs 1175 crore.
The company will issue Rs 800 crore fresh issue under IPO and will sell shares worth Rs 375 crore in Offer for Sale (OFS). The company is in talks with the book running lead managers for the pre-IPO placement. In the offer for sale, the company’s promoter TS Kalyanraman will sell shares worth Rs 125 crore and Hydel Investment for Rs 250 crore.
Kalyanraman holds 27.41 per cent in the jewelery company and 24 per cent stake in Highdale Investment. The company will use the funds raised from the issue for the next two years.
Kalyan Jewelers’ rival company was listed in December 2012. After that, for the first time a jewelery company is going to be listed in the market. Looking at the company’s network, Kalyan Jewelers had 107 showrooms in 21 states of the country till 30 June 2020. Apart from this, the company also has 30 showrooms abroad.
What should an investor do?
Mint wrote according to Angel Broking, “Kalyan Jewelers is the largest jewelery company in the country. In terms of valuation, the pre-issue of the company is TTM EV / Sales 1.4. In terms of the company’s upper price band, the rival Titan “. Titan’s financial track record is better than that of Kalyan Jewelers.”
However, the brokerage house also said that it is expected that the company will do better on the strength of strong brand and stores. So they have advised to buy it.
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