Kalyan Jewellers’ Rs 1,175-crore IPO opens today: Should you subscribe?

New Delhi: Kalyan Jewellers India IPO opens for public subscription on Tuesday. The Rs 1,175-crore IPO of Kalyan Jewellers India Ltd comprises issuance of fresh equity aggregating up to Rs 800 crore and an offer for sale worth Rs 375 crore.

Kalyan Jewellers' promoter T S Kalyanaraman would be offloading 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 set the price band at Rs 86-87 a share for the initial share-sale, which will conclude on March 18.

Ahead of the IPO, Kalyan Jewellers on Monday raised Rs 352 crore from anchor investors. The company' IPO committee has decided to allocate 4,04,48,275 shares at Rs 87 per piece to 15 anchor investors. At this price, the firm garnered Rs 351.89 crore, Kalyan Jewellers informed BSE.

The anchor investors include the Government of Singapore, Monetary Authority of Singapore, HDFC Life Insurance Co Ltd, and BNP?Paribas Arbitrage.

The issue, with a price band of Rs 86-87 a share, will open be open for public subscription during March 16-18.

Half of the issue has been reserved 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.

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.

With PTI Inputs