Kalyan Jewelers (Kalyan Jewelers): Kalyan Jewelers has had a slow entry in the stock market. The company’s stock is listed on BSE with a 15 percent discount. Under the IPO, the price band was fixed at Rs 86-87 per share, while the stock is listed at Rs 74 on the BSE. This IPO was opened from 16 March to 18 March. This is the first time since 2012 that a jewelery company has been listed on the stock market. Prior to Kalyan Jewelers, PC Jewelers had a listing in the market. Kalyan Jewelers has money from Warburg Pincus. The IPO was subscribed 2.61 times. The lot size was 172 shares in the IPO of Kalyan Jewelers.
Use of funds in working capital requirements
The company had earlier prepared to raise Rs 1750 crore through the issue. But seeing the market situation, changed his mind. It was reduced to Rs 1175 crore. The company has issued Rs 800 crore fresh issue through an IPO. Shares worth Rs 375 crore were sold through the offer for sale. 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 should investors do next
According to brokerage house Angel Broking, the company’s performance may be better due to strong brand and strong network across the country. The company has a strong network of showrooms in India as well as abroad. 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.
According to brokerage house Geojit Financial, the valuation of the stock is also good for the long term. 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 balance sheet is also expected to improve further.
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