Is this a golden IPO for you to apply? Here is my detailed analysis on Kalyan Jewellers IPO Date 2020 where I will explain you all the important things which you must know about this latest upcoming Initial Public Offer in 2020.
Kalyan Jewellers IPO Date 2020
Table of Contents
Kalyan Jewellers who is backed by Warburg Pincus (private equity) has filed DHRP (draft red herring prospectus) for Rs.1750 crore IPO on 24 August 2020 with SEBI.
This IPO comprises of Rs.1000 crore fresh issue with Rs.750 crore offer for sale by its promoter TS Kalyanaraman & Highdell Investment a Warburg Pincus firm.
As per DHRP Kalyanaraman is planning to sell shares worth Rs.250 crore and Highdell Investment will divest shares Rs.500 crore, totaling to Rs.750 crore
The funds raised through IPO will be utilized to their working capital and general corporate requirements.
Promoters presently hold a 76% stake in their company followed with 24% by Warburg Pincus.
Warburg Pincus initially invested Rs.1200 crore in 2014 and Rs.500 crore in 2017
The company reported a 3.3% jump in its revenue at Rs.10,101 crore with a net profit of Rs.145 crore that is a 487% gain in the 2019 financial year.
Kalyan Jewellers Advertisement
Here is their latest ad for Ganesh Chathurthi 2020
Important Things About Kalyan Jewellers Jewellers IPO
As per the Technopak report, India is largely been unorganized and fragmented where there are more than 5 lac goldsmiths and jewelers operating at local level which makes it challenging for Indian jewelry customers to identify the purity of gold.
Kalyan Jewellers entered the Indian market with a strong brand and built trust over the period of years and transparency in gold jewellery pricing, purity, and weight of ornaments..
Kalyanaraman the promoter of Kalyan Jewellers has 45 years of retail experience out of which 25 years in the jewelry industry.
Kalyan Jewellers was founded by T S Kalyanaraman, first jewelry shop opened in 1993 at Thrissur, Kerala with an initial capital of 7.5 million
Kalyan Jewellers are one of the top jewelry manufacturers in India with strong roots in the textile trading, distribution business industry
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Initially, Kalyan Jewellers was present in southern parts of India like Kerala, Tamil Nadu, Karnataka, Andra, and Telangana.
In 2012 they expanded their showroom in Ahmedabad and Gujarat and signed Mr.Amitabh Bachchan as its first national brand ambassador
In 2013 Kalyan Jewellers enter international markets by opening six showrooms in UAE and expanded to 30 showrooms in the Middle East
Their business is backed with robust information technology to ensure best-in-class of standards for controls and operational efficiency.
As of February 2020, they have 137 showrooms with My Kalyan customer service center for advance booking wedding collections followed with:
- Kalyan Gold Purchase Advance Scheme
- Gold Insurance for Gold Ornaments
- Presently there are 761 My Kalyan outlets
Kalyan Jewellers Brand Ambassadors In India (2020)
- Amitabh Bachchan and Jaya Bachchan as their global brand ambassadors
- Shweta Bachchan Nanda as celebrity influencer
- Katrina Kaif
- Prabhu Ganeshan
- Akkineni Nagarjuna
- Shiva Rajkumar
- Manju Warrier
- Wamiqa Gabbi
- Pooja Sawant
- Ritabhari Chakraborty
They have released Rs.10 crores towards for Covid-19 fund where they will assure the fund will be utilized for meaningful purpose and help the people who suffered from a pandemic virus.
Assured that their 8000 employees will receive their full salary irrespective of the impact on their business which shows their values and caring of their employees.
Kalyan Jewellers Management Team
- T S Kalyanaraman - CMD & Promoter
- Rajesh Kalyanaram - Executive Director
- Ramesh Kalyanarama - Executive Director
- Mr. T.K. Seetharam and Mr. T.K. Ramesh - Whole-time Directors & Promoters
Kalyan Jewellers Brands
- Mudhra - Handcrafted antique jewelry
- Nimah - Timeless heritage jewelry
- Anokhi - Uncut diamond jewelry
- Rang - Precious stones
- Vedha - Heritage jewelry with uncut diamonds
- Tejasvi - Polki diamond jewelry
- Apoorva - Diamonds for special occasions
- Ziah - Sparkling diamond jewelry
- Laya - Diamond for all expressions
- Glo - Dancing diamond
- Hera - Everyday diamond jewelry
- Candere - Online jewelry
Kalyan Jewelers DHRP Prospectus
You can find read the DHRP prospectus on this link
COVID - 19 Impact On Kalyan Jewellers
Due to government-mandated lockdown, they had to temporarily close all of their showrooms and manufacturing units, My Kalyan centers and procurement centers.
Permanently closed seven showrooms in the middle east and presently operating with 30 showrooms as of June 2020.
According to Technopak report, the demand for wedding-related jewelry is still in higher demand irrespective of marriages conducted at homes because gold jewelry is an integral part of an Indian wedding.
Management has taken proactive steps to ensure that business will be less impacted by the below steps:
- Reducing marketing costs
- Seeking partial waivers with discounts under lease agreements for their showrooms
- Reducing administrative overhead costs without any layoff
Gold Industry In India
India's gems and jewellery sector is one of the largest in the world which contributes to 29% of global jewellery consumption.
As per economic analysis done by Gold.org India entered into worlds fastest growing economy in 2015 which indicates that income growth drives to expenses in luxury like Gold. And on the other had gold is considered as the future investment by most of middle class to upper class because of it demand and supply chain.
Due to the rise in young Indian middles class with better income the gold demand would go high which would see more investments in Indian jewellery business.
Factors affecting our Indian gold demand:
- Indian middle class is expected to rise 547 million by 2025
- Gold demand per house holdincome to increase by minimum of 1%
- Gold demand is expected to fall whenever gold increases by 1% the demand would fall by 0.5%
This sector is supported by more than three lakh gems and jewellery players and expected to grow by the US $103.06 billion during 2019 - 2023
State Wise Gold Consumption in India
Below is the list state wise top gold consumers in India
Kalyan Jewellers IPO Date And Share Price
The exact timeline of IPO, price, date is still yet to be confirmed (you can return back for update on this section in next few days)
Kalyan Jewellers IPO Details
Rs. 10 per equity share
Rs. 86 - 87
Minimum Order Quantity
172 - Considered as one lot
26 March 2021
Offer For Sale
Equity share of Rs.10
(aggregating upto Rs.375 crores)
Equity share of Rs.10
(aggregating upto Rs.800 crores)