12 Mar , 2021 By : kanchan Joshi
Kalyan Jewellers India is all set to launch its Rs1,175 crore intial public offering (IPO) on 16 March. The company fixed the a price band of Rs86-87 a share for the issue. The public issue will open for bidding till 15 March. The bidding for anchor investors would open on 15 March, Kalyan Jewellers announced.
The company plans to raise Rs1,175 crore through the offer which comprises issuance of fresh equity aggregating up to Rs800 crore and an offer for sale (OFS) worth Rs375 crore. The offer for sale consists of a sale of Rs125 crore worth of shares by promoter TS Kalyanaraman and Rs250 crore by investor Highdell Investment, an affiliate of Warburg Pincus.
Half of the issue is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional bidders, Kalyan Jewellers said.
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.
Proceeds from the fresh issue of shares would be utilised for working capital requirements and general corporate purpose, the company said.
“Kalyan Jewellers (KJIL) is one of India's largest Jewellery companies. In terms of valuations, the pre-issue TTM EV/Sales works out to 1.4 (at the upper end of the issue price band), which is low compared to Titan Company (trading at 7.7x). However, Titan company has a better financial track record compared to KJIL," said Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd.
"Going forward, we believe that Kalyan Jewellers would perform better on the back of a strong brand and number of stores in India & internationally. Thus, we recommend a subscribe rating on the issue," he added.
Kalyan Jewellers designs, manufactures and sells a wide range of gold, studded and other jewellery products. June, 2020, it had 107 showrooms across 21 states and union territories in India, and 30 showrooms in the Middle East.
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