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Warburg to Exit from Kalyan Jewellers via its IPO of Rs 1,750 Cr

Country’s biggest gold retailer, Kalyan Jewellers India Ltd. on Monday, filed for its Initial Public Offerings (IPOs) and the company and its shareholders plan to sell shares worth Rs 1,750 crore.
The company plans to raise Rs 1,000 crore through fresh issuance of shares, T. S. Kalyanaraman, company’s promoter and its private equity firm, Warburg Pincus plan to sell shares worth Rs 250 crore and Rs 500 crore. The company said in a regulatory filing that the capital raised through IPO will be used for meeting working capital requirements and for other general purposes. ICICI Securities, Axis Capital, and Citi were the investment banks that have advised the company for raising funds through IPO.
Currently, Warburg Pincus holds a 24% stake in the company and it has invested  Rs 1,700 crore so far. In 2014, Warburg invested first time in Kalyan Jewellers with a cheque of Rs 1,200 crore and in 2017, it had committed Rs 500 crore.
In the year ended on 31 March 2020, Kalyan jeweller had reported Rs 10,100.9 crore in revenue from operations, compared to its revenue of Rs 9,770 crore in the year-ago financial period. Profit of the company stood at Rs 142.2 crore, against a loss of Rs 4.8 crore a year earlier. Company’s revenue in the FY20, from India, was 78.19% and 21.81% from the Middle East.

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