Kalyan Jewellers Ipo Opens For Subscription Grey Market Premium Weak Should You Subscribe

Kalyan Jewellers IPO opens for subscription: Grey market premium weak – Should you subscribe?

Kalyan Jewellers Ipo, Kalyan Jewellers Share, Kalyan Jewellers Gmp

Kalyan Jewellers IPO opens for subscription today

The initial public offer of Kalyan Jewellers India Ltd will open for subscription today. The company has fixed a price band of Rs 86-87 a share for its Rs 1,175 crore-initial share-sale. The three-day public issue will conclude on March 18.

Ahead of the public issue, Kalyan Jewellers raised Rs 352 crore from anchor investors. The anchor investors include the Government of Singapore, Monetary Authority of Singapore, HDFC Life Insurance Co Ltd, and BNP Paribas Arbitrage.

According to the company’s IPO committee, 4,04,48,275 shares will be allocated at Rs 87 per piece to 15 anchor investors. At this price, the firm garnered Rs 351.89 crore..

The Rs 1,175-crore IPO comprises issuance of fresh equity aggregating up to Rs 800 crore and an offer for sale (OFS) worth Rs 375 crore. Kalyan Jewellers’ promoter T S Kalyanaraman will offload shares worth up to Rs 125 crore, while Highdell Investment Ltd, an affiliate of Warburg Pincus, would sell up to Rs 250 crore worth of shares through the OFS route.

The company has reserved half of the issue for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders.

Proceeds from the fresh issue of shares would be utilised for working capital requirements and general corporate purpose.

At the end of June 2020, the company had 107 showrooms across 21 states and Union Territories in India, and 30 showrooms in the Middle East. Kalyan Jewellers designs, manufactures, and sells a wide range of gold, studded and other jewellery products.

Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets are the global co-ordinators and book running lead managers to the offer. Last month, the capital markets watchdog had sought clarification from the merchant banker regarding the company’s public issue.

Kalyan Jewellers, which filed preliminary papers for IPO in August, obtained SEBI’s go ahead in October.

Latest Business News