Shares of Kalyan Jewellers India tumbled 11.00 percent on Tuesday’s early trades after 2.8 crore shares of the company, or 2.74 percent of the overall equity reportedly changed hands in a large block deal. The buyers and sellers are not known yet, however, reports suggest that Warburg Pincus’ Highdell Investments was looking to sell some of its holdings.
At 01:39 PM, the stock was quoting at 107.95 apiece down 9.02 percent. Volumes jumped at the counter and 435.08 lakh shares changed hands as compared to 45.88 lakh shares as of Monday.
According to a report by CNBC-TV18, the shares exchanged hands at an average price of ₹ 108 per share, in a deal valued at ₹ 312.17 crores. The floor price of the proposed deal was initially set at ₹ 110 per share which is at a 7.4 percent discount to Monday’s closing price. There will be a 60-day lock-in period for the sale of further shares, according to the report.
Highdell Investment held a 26.36 percent stake or over 25.15 crore shares in the company, according to the shareholding pattern for the October to December quarter.
Kalyan Jewellers launched many showrooms in the non-south market over the last 12 months. In the December quarter alone, it added five new showrooms taking the total count of its showrooms in India to 136. It has already signed more than 25 letters of intent with potential franchise partners and expects to open 11 new franchised showrooms in the non-south market in the next three months.
In another development, Mr Mahalingam Ramaswamy ceased to be an independent director of the company upon completion of his second term of two consecutive years at the close of business hours on March 27, 2023.
Kalyan Jewellers is one of the largest Jewellery retailers in India and it designs manufactures and sells a variety of studded and other gold jewellery products across various price points. It is a small-cap company with a market capitalization of ₹ 12,222 crores.
For the October to December quarter, the company reported a 10% growth in its consolidated profit after tax (PAT) at ₹148 crore. Its net profit stood at ₹ 134.5 crores in the corresponding quarter a year ago. Its revenue grew 12% to ₹ 3,844 crore during the quarter under review, against ₹ 3,435 crores in the same period a year ago.
Written by Simran Bafna
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