Kalyan Jewellers IPO Open Today: Today, investors have another option for investing in the IPO market. Kalyan Jewelers’ IPO has opened on 16 March. The company plans to raise Rs 1175 crore through this IPO. Kalyan Jewelers has fixed the price band for the IPO at Rs 86-87 per share. This IPO will open on March 16 and will close on March 18. This will be the first time after 2012 when a jewelery company is going to be listed in the stock market. Prior to Kalyan Jewelers, PC Jewelers had a listing in the market. Warburg Pincus has money in this company.
800 crore fresh issue
The company had earlier prepared to raise Rs 1750 crore through the issue. But changed his mind after seeing the circumstances of the market. Now it has been reduced to Rs 1175 crore. The company will issue a fresh issue of Rs 800 crore through this IPO. Apart from this, shares worth Rs 375 crore will be sold through the offer for sale. In the offer for sale, the company’s promoter TS Kalyanraman will sell shares worth Rs 125 crore, while Hydel Investment will sell shares worth Rs 250 crore. Kalyanraman holds 27.41 per cent stake in the company and Haidel Investment holds 24 per cent.
Kalyan Jewelers IPO: Rs 1175 crore IPO to open on March 16, price band is Rs 86-87
Lot size
The lot size is 172 shares in the IPO of Kalyan Jewelers. That is, it is necessary to invest for at least 172 shares. The upper price band will have to invest at least Rs 14,964 in terms of Rs 87. A maximum of 13 lots can be bid, the value of which will be Rs 194,532. Allotment of shares will take place on 23 March, the company may be listed in the market on 26 March.
Where will the fund be used
The company will use the funds raised from the issue for the next two years. As of June 30, 2020, Kalyan Jewelers had 107 showrooms in 21 states of the country. Apart from this, the company also has 30 showrooms abroad.
What to do investor
According to brokerage house Angel Broking, money can be invested in an IPO. Due to the strong brand and strong network across the country, the performance of the company can be better. The company has a strong network of showrooms in India as well as abroad. The product portfolio is diversified. The valuation is lower than that of Titan Company. Although Titan’s track record is much better than that of Kalyan Jewelers.
Brokerage house Geojit Financial has also suggested subscribing to the IPO. The company has 107 showrooms in 21 states in India. While there are 30 showrooms in West Asia. The bed base is strong. The management team is experienced in the jewelery and retail industry, which will benefit Kalyan Jewelers. The company will also benefit from the backing of private equity player Warburg Pincus. The valuation of the stock is also good for the long term. The balance sheet is also expected to improve further.