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Kalyan Jewellers’ Share Falls 11% in Block Trade, Swapping More Than 39 Million Shares

Kalyan Jewellers churns the most in the 13 weeks after a big deal, but analysts see a bright return.

Kalyan Jewellers India (KJIL) shares fell 11% to Rs 105.60 on the National Stock Exchange (NSE) in intraday trade on Tuesday after more than 3% of the company changed hands over the counter in block trades.

KJIL was quoted 8.4% lower at Rs 108.65 at 9:28 am. About 33.8 million shares changed hands on the NSE, representing 3.3% of the company’s total share capital. Exchange data showed that about 5.8 million shares, or 0.56% of Kalyan Jewellers’ total share capital, changed hands on the BSE. The names of the buyer and seller were not immediately identified.

According to media reports, Warburg Pincus, one of KJIL’s main investors, may sell a 2.5% stake in a block deal today. According to CNBC TV-18, the shares were said to be sold by Highdell Investments, the subsidiary through which Warburg Pincus invested in the jewellery company.

According to the shareholding pattern data, as of December 31, 2022, Highdell Investment Ltd holds 271.54 million shares or 26.36% of KJIL shares.

So far in 2023, KJIL has underperformed the market, falling 16%, while the Nifty50 is down almost 7%. The stock hit an all-time high of Rs 134.20 on December 29, 2022. The company made its stock market debut on March 26, 2021. It was issued at Rs 87 per share in an initial public offering (IPO).

According to the company, Kalyan is one of India’s top five gold jewellery retail companies, with around a 6% share of the overall organized market. KJIL has 138 showrooms in 21 states and union territories of India. In addition, the group has 31 showrooms in four countries in the Middle East.

Concurrently, on March 20, 2023, India Ratings and Research (Ind-Ra) revised KJIL’s outlook from stable to positive while affirming the long-term issuer rating at ‘IND A’.

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