Shares of this jewelry stock surged nearly 8 percent after Highdell Investment sells 2.36 percent of its stake to the company’s promoters. In total, 6.6 crore shares were exchanged across five block deals.
Price Movement
In Thursday’s trading session, the share price of Kalyan Jewellers India Limited surged to an intra-day high of Rs.589.9 per share rising 7.6 percent from its previous close of Rs.548.15 apiece.
What is the news
On August 21, Kalyan Jewellers saw approximately 6.6 crore shares, valued at Rs.3,585 crore, exchanged in five block deals at a floor price of Rs.539 per share, representing a 6.4 percent stake in the company.
The company also announced that a Share Purchase Agreement (SPA) was executed on the same day between Highdell Investment Ltd. and the promoters of Kalyan Jewellers India Limited.
Under the SPA, Highdell will sell 2,42,99,066 equity shares, equivalent to 2.36 percent of the company’s share capital, to the promoter at Rs.535 per share, totaling Rs.1,300 crore. Highdell Investment is likely to sell part of its stake to the company’s promoter, Trikkur Sitarama Iyer Kalyanaraman.
As a result, the promoter and promoter group’s shareholding in Kalyan Jewellers will increase from 60.59 percent to 62.95 percent.
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Geographical Revenue Mix
The company has a presence in five Middle Eastern countries, operating 36 showrooms that accounted for 15.4 percent of its Q1 FY25 revenues, while its Indian operations contributed the remaining 84.6 percent. In FY24, the company launched its first franchise showroom in the Middle East.
Sub-brands Expansion
Kalyan Jewellers has introduced several sub-brands designed to appeal to different customer segments and occasions. These include Muhurat, Mudhra, Antara, Nimha, Rang, Laya, and others.
E-commerce development
Kalyan Jewellers acquired Candere.com to enhance their online presence. They launched their first FOCO Candere showroom in FY24 and expanded to 16 FOCO showrooms by June 30, 2024. The company also has a strong pipeline of potential franchise partners, with 50 signed Letters of Intent (LOIs) for FY25.
Financial Overview
With a market capitalization of Rs.59,466 crores, Kalyan Jewellers reported a consolidated revenue of Rs.5,535 crores for the quarter ending June 2024, marking a 26.5 percent increase from Rs.4,376 crores the previous year. Net profit rose by 23.6 percent to Rs.178 crores, up from Rs.144 crores.
Company Profile
Kalyan Jewellers India Limited is an India-based jewelry retailer, which is engaged in offering gold, diamond, pearl, white gold, gemstone, platinum, and silver jewelry products. The company has a market share of 6 percent in the organized jewelry market.
Written by – Siddesh S Raskar
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