Kalyan Jewellers Gets SEBI Approval To Float Rs 1,750-Crore IPO
An employee shows a gold necklace to a customer inside the Dwarkadas Chandumal Jewelers store in the Zaveri Bazaar area of Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Kalyan Jewellers Gets SEBI Approval To Float Rs 1,750-Crore IPO

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Kalyan Jewellers India Ltd. has received the market regulator’s approval to raise up to Rs 1,750 crore via an initial public offering.

According to the draft red-herring prospectus filed with the Securities and Exchange Board of India, the Kalyan Jewellers IPO comprises fresh issue of shares worth Rs 1,000 crore, and an offer for sale worth Rs 750 crore—promoter TS Kalyanaraman and investor Highdell Investment Ltd. will offload stake worth Rs 250 crore and Rs 500 crore, respectively.

The proceeds from the fresh issue of shares will be utilised for working capital needs and general corporate purpose.

The Thrissur, Kerala-based jeweller, which filed the draft papers for the IPO in August, obtained SEBI’s observations on Oct. 15, according to an update on the regulator’s website. The observations are necessary for any company to launch public issues like an initial public offer, follow-on public offer and rights issue.

At the end of June this year, Kalyan Jewellers had 107 showrooms across 21 states and union territories in India, and 30 showrooms in the Middle East. The company designs, manufactures and sells a wide range of gold, studded and other jewellery products.

Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets are the global co-ordinators and book-running lead managers to the offer.

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