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This article is more than 1 year old.

Kalyan Jewellers files DRHP for Rs 1,750-crore IPO, says report

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Private equity major Warburg Pincus backed jewellery retail firm Kalyan Jewellers has filed its draft red herring prospectus (DRHP) with market regulator Securities & Exchange Board of India (SEBI) for a Rs 1,750-crore initial public offer (IPO), according to a report by Moneycontrol.

Kalyan Jewellers files DRHP for Rs 1,750-crore IPO, says report
Private equity major Warburg Pincus backed jewellery retail firm Kalyan Jewellers has filed its draft red herring prospectus (DRHP) with market regulator Securities & Exchange Board of India (SEBI) for a Rs 1,750-crore initial public offer (IPO), according to a report by Moneycontrol.
The fresh issue component will be Rs 1,000 crores and the promoters and Warburg Pincus will dilute stake worth Rs 250 crore and Rs 500 crore, respectively, the Moneycontrol report added quoting people with the knowledge.
The IPO will facilitate a partial exit for the private equity investor and also facilitate debt reduction, it added.
Axis Capital, Citi, ICICI Securities and SBI Capital are the investment banks working on the IPO while Law firm AZB & Partners is the counsel to the company, Khaitan & Co is advising the investment banks and Warburg Pincus was advised by Cyril Amarchand Mangaldas, the report said.
According to a report by ICRA, Kalyan Jewellers had an operating income of Rs 7,454 crore and a profit after tax (PAT) of Rs 50 crore in FY19. The company has a debt repayment obligation of Rs 80 crore each in FY2020 and FY2021.
The company has over 135 showrooms across 19 states and two Union Territories and also has an online brand called ‘Candere by Kalyan Jewellers’. The firm is present in five countries, including the Middle East region, and has over 750 ‘My Kalyan’ stores in India, which function as customer touch points and feeders to the showrooms.
The private equity firm Warburg Pincus has collectively invested around Rs 1,700 crore in two tranches in Kalyan Jewellers. According to ICRA report in September 2019, Warburg Pincus has a 30 percent stake in the jewellery firm.
The last listing by a pureplay jewellery player was nearly 8 years back when the Rs 600-crore PC Jewellers IPO opened in December 2012, moneycontrol reported.
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