Kalyan Jewellers IPO Review

Kalyan Jewellers IPO aggregating to Rs. 1,175 crore IPO opens from 16th March to 18th March 2021. The price band for the IPO is Rs. 86- Rs.87 per share. It comprises of Rs. 800 cr. fresh issue and offer for sale of Rs. 375 cr by PE investor Warburg Pincus and promoter. Kalyan Jewellers IPO issue represents 13% of post-issue capital. Kalyan Jewellers is the country’s second largest pan India jewellery retailer, after Tanishq (Titan industries).

Kalyan Jewellers IPO Details:

Updates & Indicative Time Table:

  • ANCHOR ISSUE: IPO bound Kalyan Jewellers allotted 40,448,275 equity shares to 15 anchor investors and raised ₹351.89 crore ahead of the company’s proposed IPO at the upper price band of ₹87 per equity share. The largest investors inlcuded Government Of Singapore (29% stake) and Sundaram Mutual Fund. Others included Calypso Global Investment Fund, Monetary Authority Of Singapore, Kuber India Fund, Segantii India Mauritius, Moon Capital Trading PTE. Ltd., Edelweiss Alternative Investment Opportunities, Baroda Large And Mid-Cap Fund etc.
  • Indicative Timetable
    • Finalization of Basis of Allotment 23-03-2021
    • Refunds/Unblocking ASBA Fund 24-03-2021
    • Credit of equity shares to DP A/c 25-03-2021
    • Trading commences : 26-03-2021

About Kalyan Jewellers

  • Kalyan Jewellers India Limited incorporated in the 1993 is one of the largest jewellery companies in India.
  • The company was established by T.S. Kalyanaraman.
  • The company started with a single showroom in Thrissur, Kerala. Since then, it has expanded and now has a pan-India presence with 107 showrooms located across 21 states and union territories in India.
  • Kalyan Jewellers design, manufacture and sell a wide range of gold, studded and other jewellery products across various price points ranging from jewellery for special occasions, such as weddings, which is their highest-selling product category, to daily-wear jewellery.
  • Kalyan Jewelers has an international presence with 30 showrooms located in the Middle East as of December 31, 2020.
  • They also sell jewellery through their online platform at www.candere.com.
  • Kalyan Jewellers is the second-largest pan-India jewellery retailer, after Tanishq
  • The company is supported by an experienced board of directors which consists of eminent personalities from varied fields.
Photos of Kalyan Jewellers, C Scheme, Jaipur - magicpin

Kalyan Jewellers IPO: Financials


  • Kalyan Jewellers Limited is an established brand built on the core values of trust and transparency
  • One of India’s largest jewellery companies and has a pan-India presence
  • Hyperlocal strategy enabling it to cater to a wide range of geographies and customer segments
  • Strong distribution network
  • Capabilities enabling deep customer outreach
  • Visionary promoters with strong leadership and a demonstrated track
  • Record supported by a highly experienced and accomplished senior management team & board of directors
  • Wide range of product offerings targeted at a diverse set of customers
  • Robust and effective internal control processes to support a growing organization and showroom network with a pan-India presence


  • Company’s business requires a substantial amount of working capital.
  • The business is subject to incidents of theft or damage to inventory, in transit, prior to or during showroom stocking as well as display.
  • Fluctuations in the price of gold can have an effect on business.
  • The market in which the company operates is highly competitive with both organised pan-India jewellers as well as unorganised local players in the various markets.

Kalyan Jewellers IPO: Assessment

  • The size of the Indian jewelry retail sector in FY20 was ~US$ 64 billion. The share of organized retail in the sector wasat ~32%.
  • Kalyan Jewellers is one the largest jewellery company in India based on revenue in FY20 (as per Technopak Report) with 5.9% share in organized market and 1.8% share of the overall jewelry market. Tanishq which is the leader in the Indian Jewellery market has 3.9% share of the overall jewellery market and 12.5% share of the organised jewellery market.
  • As of December 2020, 78.19% of its revenue came from India while the remaining 21.81% came from Middle East.
  • 51.29% of Kalyan’s FY20 revenue came from outside of tier-I cities.
  • Kalyan Jewellers has expanded its footprint beyond South India. Operations outside South India contributed 57.69% of itsto its gross profit and were 47.81% of its revenue in the financial year FY20.
  • Kalyan Jewellers has 766 ‘My Kalyan’ grassroot stores and these contributed 21% to its revenue.
  • A broad comparison with its peer Titan and a smaller player is indicated.
  • The company suffered a setback for FY19 due to unprecedent floods in southern regions and further due to pandemic.
  • Compared to Kalyan Jewellers, Tanishq has a high share of studded jwelleery leadung to better profitability.
  • while Kalyan Jewellers has very high level of debt, Titan is cash rich.
  • Kalyan Jewellers shareholders include Highdell Investment Ltd, PE fund belonging to the Warburg Pincus group. The company has issued and allotted 98,857,435 equity shares to Highdell at a price of R 50.58 on 4 March 2021, pursuant to conversion of 119,047,619 compulsorily convertible preference shares (CCPS) held by Highdell,
  • Kalyan Jewellers business requires a heavy amount of working capital both to finance inventory as well as purchase of gold. The working capital loans stood at hefty Rs. 3438.99 crore at the end of Dec 2020.
  • Kalyan Jewellers IPO was last reported to be commanding very nominal GMP in single digits.
  • Kalyan Jewellers IPO is demanding a P/E multiple of 62.7 times of FY2020 consolidated EPS. based on FY20 EPS of Rs. 1.4
  • The Anchor list of Kalyan Jewellers attracted reputed investors.
  • I intend to apply in Kalyan Jewellers IPO only if it witnesses good QIB demand. Despite having good brand value, good revenues, Kalyan Jewellers IPO is rather expensive due to its lackluster financial performance and lags significantly behind Titan on various ratios.

Standard disclaimer:  I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2)  Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors.  I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or  leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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