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Kalyan Jewellers India Ltd, the Kerala-based jewellery brand, has filed a draft red herring prospectus (DRHP) with SEBI for a Rs 1,750-crore initial public offering.
The IPO comprises equity shares of face value of Rs 10 each of Kalyan Jewellers aggregating up to Rs 1,750 crore, comprising a fresh issue aggregating Rs 1,000 crore and an offer for sale aggregating up to Rs 750 crore, comprising Rs 250 crore by “Promoter Selling Shareholder” and up to Rs 500 crore by “Investor Selling Shareholder”.
Kalyan Jewellers was established by T.S. Kalyanaraman, who has over 45 years of retail experience, of which over 25 years is in the jewellery industry. The company started its jewellery business in 1993 with a single showroom in Thrissur, Kerala.
It is a pan-India jewellery company, with 107 showrooms in 21 states and union territories, besides 30 showrooms located in West Asia as of June 30.
In fiscal 2020, the revenue from operations stood at Rs 10,100.92 crore, of which 78.19 per cent was from India and 21.81 per cent from West Asia.
Sources in the sector told BusinessLine that this was the biggest retail IPO in the country in the past three years. D-Mart came out with a large retail IPO in March 2017.
Of the Rs 1,750 crore to be raised through the IPO, it is proposed to utilise Rs 1,000 crore for brand expansion, Rs 500 crore to dilute the stake of PE investor Warburg Pincus and Rs 250 crore for promoter dilution.
In a market that is dominated by regional and local players, Kalyan Jewellers has established itself as a brand across the country thanks to its hyper local strategy. The My Kalyan marketing tool of the brand, with touch-points in 750+ micro markets, is a major revenue earner. Tanishq is the main competitor of Kalyan Jewellers at the national level, the sources added.
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