When was the last time you heard of a jewellery IPO hitting the domestic capital markets? If you did some research, you’d know that the last IPO from the jewellery segment was PC Jewellers, which was nearly eight year ago in the year 2012. Now it’s time for a new player in the Jewellery segment and that new player is Kerala based jewellery retail firm Kalyan Jewellers. So here are some things you need to know about Kalyan Jewellers before the launch of the IPO.

The Latest Update

Kalyan Jewellers IPO is backed by private equity giant Warburg Pincus. The firm has drafted its Draft Red Herring Prospectus, or Offer Document (OD) with market regulator SEBI to raise an IPO for Rs 1,750 crore.

What is Driving The IPO

There are a few factors for the rationale behind the Kalyan Jewellers IPO.

-       It will help provide a partial exit to the private equity investor Warburg Pincus.

-       It will help facilitate working capital, facilitate store expansion, facilitate debt reduction, and other general corporate purposes.

Components of the IPO

Fresh Issue: This component is ₹1000 with the Promoter of Kalyan Jewellers and PE player both diluting stake worth ₹250 crore and ₹500 crore respectively.

Investment Banks

ICICI Securities, Citi Bank, Axis Capital, SBI Capital are the investment bankers working on this IPO. Law firms AZB and partners are the legal advisors working on the IPO.

Company Tradecraft

Today the company owns 107 showrooms in 21 different states along with 30 showrooms in the Middle East. As part of the company’s revenue breakup, the company makes:

·     74.77% of their revenue from Gold.

·     23.36% of their revenue from studded jewellery.

·     1.83% of their revenue from others.

Kalyan Jewelers offers a wide range of jewellery designs made craftsmanship that showcases the rich Indian heritage, culture and diversity. The company has managed to create a strong brand presence in a short span of time. The official brand ambassador for Kalyan Jewellers is Mr. Amitabh Bachchan.

 

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