Kalyan Jewellers IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Kalyan Jewellers IPO

Kalyan Jewellers IPO: Key Details

  • Grey Market Premium (GMP) today: ₹8 – ₹12
  • Raised ₹352 Crore via anchor investor sale at ₹87 per share

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Kalyan Jewellers Limited, incorporated in 1993, with a single showroom in Thrissur, Kerala are one of the largest jewellery companies in India based on revenue as of March 31, 2020. They have since expanded to become a pan-India jewellery company, with 107 showrooms located across 21 states and union territories in India, and also have an international presence with 30 showrooms located in the Middle East as of December 31, 2020.

In Fiscal 2020 and in the nine months ended December 31, 2020, their revenue from operations was ₹10,100.92 crore and ₹5,516.7o crore, of which 78.19% and 86.21% was from India and 21.81% and 13.79% was from the Middle East. Their total showrooms have increased from 77 as of March 31, 2015 to 137 showrooms as of December 31, 2020. They also sell jewellery through its online platform at www.candere.com.

They design, manufacture and sell a wide range of gold, studded and other jewellery products across various price points ranging from jewellery for special occasions, such as weddings, which is their highest-selling product category, to daily-wear jewellery. In Fiscal 2020 and in the nine months ended December 31, 2020, 74.77% and 75.88%, respectively, of our revenue from operations was from the sale of gold jewellery, 23.36% and 21.72%, respectively, was from the sale of studded jewellery (which includes diamonds and precious stones), and 1.87% and 2.40%, respectively, was from the sale of other jewellery.

Competitive Strengths

  • An established brand built on the core values of trust and transparency.
  • One of India’s largest jewellery companies with a pan-India presence
  • Hyperlocal strategy enabling us to cater to a wide range of geographies and customer segments
  • Extensive grassroots “My Kalyan” network with strong distribution capabilities enabling deep customer outreach
  • Visionary Promoters with strong leadership and a demonstrated track record supported by a highly experienced and accomplished senior management team and board of directors
  • Wide range of product offerings targeted at a diverse set of customers
  • Robust and effective internal control processes to support a growing organisation and showroom network with a pan-India presence

Company Strategy

  • Leverage the scalable business model to expand its showroom network and diversify the channels of distribution
  • Widen the product offerings to further increase consumer reach
  • Leverage its “My Kalyan” network to deepen customer outreach and strengthen the distribution network in its core markets
  • Invest in CRM, marketing and analytics to more effectively target consumers and drive sales

Proceeds from Kalyan Jewellers IPO will be used to:

  • Funding working capital requirements of the Company; and
  • General corporate purposes

Kalyan Jewellers IPO: Financials

201820192020 Mar2020 Dec
Revenue from Ops₹1,054.79 Cr₹9770.08 Cr₹1,010.09 Cr₹5516.70 Cr
Profit before Tax₹213.79 Cr₹20.93 Cr₹220.89 Cr₹(59.12) Cr
Profit after Tax31.53 Cr₹97.37 Cr₹41.07 Cr₹(79.95) Cr
EPS (Basic)1.70(0.04)1.70(0.96)
As of March 2020EPSP/E (Floor)P/E (Cap)
Based on basic EPS1.7050.5951.18

Kalyan Jewellers IPO: Comparison with listed industry peers

CompanyP/E (Cap)
Kalyan Jewellers51.18
Sector Highest84.23
Sector Lowest84.23
Sector Average84.23
Based on RHP

Kalyan Jewellers IPO Dashboard

Issue Details

TypeValue
Issue Size₹1,175 Cr
Fresh Issue₹800 Cr
Offer for Sale₹375 Cr
Face Value₹10/- per Equity Share
IPO Price₹86 – ₹87
Lot Size172 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open16/03/2021
Bid Close18/03/2021
Allotment Finalization23/03/2021
Initiation of Refunds24/03/2021
Credit of Shares25/03/2021
Listing Date26/03/2021

Lot Size and Price

LotsSharesAmount
110₹14,964
13130₹1,94,532

Promoter Holding

HoldingPercentage
Pre-Issue67.99%
Post-Issue60.53%
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Kalyan Jewellers IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%2,72,79,068*
NII15%2,04,59,303
RII (Retail)35%4,77,38,372
Employees2,32,558
Total100%9,57,09,301
*Shares left for subscription post anchor investor sale of ₹352 crores

Kalyan Jewellers IPO: Risks

  • The strength of the brands is crucial to its success and it may not succeed in continuing to maintain and develop its brands.
  • Their ability to attract customers is dependent on the success and visibility of our showrooms.
  • They may be unable to respond to changes in consumer demands and market trends in a timely manner.
  • They are subject to succession risks as they have entered into nominee shareholder arrangements with natural persons
  • The agreements governing its indebtedness contain conditions and restrictions on its operations, additional financing and capital structure.

For complete internal and external risk factors, you can refer the RHP and DRHP of the company.

Kalyan Jewellers IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime India Private Limited
C-101, 1st floor, 247 Park
L. B. S. Marg, Vikhroli West
Mumbai 400 083, Maharashtra, India

Phone:(91 22) 4918 6200
Email: [email protected]

Lead Managers of the Issue

Axis Capital Limited
Citigroup Global Markets India Private Limited
ICICI Securities Limited

SBI Capital Markets Limited
BOB Capital Markets Limited

Phone: +91-22-4325 2183 / +91-22-6175 9999
Email: [email protected]

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