The Kerala based Kalyan Jewelers have filed a draft red herring prospectus (DRHP) with SEBI on 24 August, 2020 for an IPO that is expected to raise Rs 1,750 crore. The jewelry house is backed by backed by private equity major Warburg Pincus, which has invested a total of Rs 1,700 crore in two tranches, in 2014 and 2017, and holds a 24% stake in the firm. The last jewelry IPO in India was in 2012 by PC Jewelers. The current IPO is Rs1,000 crore of fresh issue and Rs 750 crore offer for sale by the promoter TS Kalyanaraman and Highdell Investment, a Warburg Pincus firm. As per reports, the IPO will facilitate Warburg Pincus’ partial exit, and the proceeds will be used for working capital, store expansion and debt reduction.
The pandemic has hit the jewelry business hard, but things are looking up with the upcoming festive and wedding season.
Kalyan Jewellers was founded in 1993 by TS Kalyanaraman, who is also one of the promoters. Currently, the jeweler has 107 showrooms in India, 30 showrooms in the Middle East. The jeweler also retails via an online platform.
The Kalyan jewelers had Amitabh Bachan and Jaya Bachan as its national brand ambassador in 2012. Aishwarya Rai too was reported to have signed a two year deal as national brand ambassador.