Kalyan Jewellers India’s Rs 1,175-crore initial public providing (IPO) will open for subscription on March 16, 2021, at a value band of Rs 86-87 per share of face worth of Rs 10 every single. The public situation will close for subscription on March 18, 2021. The situation comprises fresh situation of equity shares worth Rs 800 crore and provide-for-sale (OFS) worth Rs 375 crore by promoters and shareholders. The OFS comprises promoting up to Rs 125 crore worth shares by promoter TS Kalyanaraman, and Rs 250 crore by Highdell Investment Ltd. Equity shares of Kalyan Jewellers India Ltd are proposed to be listed on BSE and NSE. No grey industry activity was observed in Kalyan Jewellers India shares.
Investors can bid for a minimum of 172 equity shares and in multiples thereafter, implying a minimum investment of Rs 14,964, at the upper value band. Not more than 50 per cent of the situation will be reserved for the certified institutional purchasers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors. Shares worth Rs 2 lakh will be reserved for eligible personnel. Also, a discount of Rs 8 per share is also becoming provided to eligible personnel bidding in the employee reservation portion.
Axis Capital, Citigroup Global Markets India Private Ltd, ICICI Securities Ltd and SBI Capital Markets are the worldwide co-ordinators and book operating lead managers to the situation. BOB Capital Markets Ltd will also be the book operating lead manager when Link Intime India Private Ltd will be the registrar to the provide. Kalyan Jewellers will join the listed peer Titan Company Ltd, which has a P/E of 84.23x. The firm has proposed to utilise the net proceeds for funding working capital which stands about Rs 600 crore and for common corporate purposes.
A portion of Kalyan Jewellers India’s operations are situated in nations in the Gulf Cooperation Council, exactly where it generated 21.81 per cent, 23.46 per cent, 21.19 per cent, 13.79 per cent and 21.36 per cent of its income from operations for fiscals 2020, 2019 and 2018, and for the nine months ended December 31, 2020, and 2019, respectively. Tanishq (Titan Company Limited) is the leader in the Indian Jewellery industry with a 3.9 per cent share of the all round jewellery industry and a 12.5 per cent share of the organized jewellery industry, based on Fiscal 2019. For the very same period, Kalyan Jewellers had a 1.8 per cent share of the all round jewellery industry and a 5.9 per cent share of the organized jewellery industry.
There are handful of multi-regional players such as Tribhovandas Bhimji Zaveri (TBZ), Malabar, Joyalukkas, Computer Jeweller and Senco Gold, which are largely focused in particular regions but have expanded and opened shops in other regions, while to a particular and restricted degree. Currently, taxes on gold contain customs duty of 12.5 per cent and GST of 3 per cent. However, in the current spending budget of 2021, the government decreased the customs duty to 7.5 per cent.