Kalyan Jewellers IPO Review 2021: The Kalyan Jewellers India Limited (KJIL) IPO opens on 16th March and closes on 18th March 2021. In this article, we cover the Kalyan Jewellers IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started.
Table of Contents
Kalyan Jewellers IPO Review – About the Company
Founded in 1993 by Mr T.S. Kalyanaraman, Kalyan Jewellers India Limited began its operations with one showroom in Thrissur, Kerala. The company designs, manufactures, and sells a variety of gold, studded and other jewellery products for various occasions like weddings, festivals, etc.
The company has come a long way in the last 28 years. Today the Jewellery company has 107 showrooms located across 21 states and union territories in India making it one of the largest gold companies in India.
Kalyan Jewellers also boasts a strong international presence. The company has over 30 showrooms in the gulf region. They also sell jewellery through their online platform at Candere.
Growth of Kalyan Jewellers
One of the major reasons for their success has been their focus on creating a brand image that represents trust and reliability. These are paramount in the gold jewellery industry and the company focussed on this aspect ever since its inception. Once this was achieved the company focussed on its expansion needs.
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Kalyan Jewellers was also the first Indian jewellery company to voluntarily opt to have all their products BIS hallmarked. In addition to this, they also ensured that all their products came with a price tag that detailed the price of various components used.
These moves enhanced customer education and transparency which was missing in the Indian markets especially in the gold jewellery industry.
Keeping customers at the forefront they also have set up 750 customer support stores in India, which function as feeders to the showrooms. This has made them one of the most trustworthy brands giving them a loyal customer base. This has further enhanced their ability to operate as a hyperlocal jewellery company in the southern states. They also have out in place strong.
Kalyan Jewellers has also given emphasis to their information technology and operational management systems. These have ensured operational efficiency and best-in-class standards of controls. In addition, the company’s introduction of policies concerning inventory management and the mitigation of gold price fluctuations have been critical to their success.
The company received investments from the Warburg Pincus Group in 2014. According to the ICRA Warburg Pincus has a 30% stake in Kalyan Jewellers. Gold Jewellery makes up 74.77% of their revenue followed by studded (diamond and precious stone) and other jewellery segments in the year 2020.
Key IPO Information of Kalyan Jewellers
The Promoters of this company are MR. T.S. KALYANARAMAN, MR. T.K. SEETHARAM AND MR. T.K. RAMESH. Mr T.S. Kalyanaraman, who has over 45 years of retail experience, of which over 28 years is in the jewellery industry.
They have appointed Axis Capital Limited, Citigroup Global Markets India Private Limited, ICICI Securities Limited, SBI Capital Markets Limited, BOB Capital Markets Limited as the lead managers to the issue. Link Intime India Private Limited has been appointed as the registrar to this issue.
Kalyan Jewellers IPO Review – Important IPO Details
| Particular | Details |
|---|---|
| IPO Size | ₹1,175.00 Cr |
| Fresh Issue | ₹800.00 Cr |
| Offer For Sale(OFS) | ₹375.00 Cr |
| Opening Date | Mar 16, 2021 |
| Closing Date | Mar 18, 2021 |
| Face Value | ₹10 per equity share |
| Price Band | ₹86 to ₹87 per equity share |
| Lot Size | 172 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date: | Mar 26, 2021 |
Purpose of the Kalyan Jewellers IPO
The net proceeds from the IPO will be used for the following purposes:
- To finance business working capital requirements.
- To meet general corporate purposes.
In Closing
The IPO opens on 16th March and closes on 18th March 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Kalyan Jewellers India Limited.
That’s all for this post. Do let us know what you think of Kalyan Jewellers IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
