KOCHI: Kerala-based Kalyan Jewellers, a retail jeweller with pan-India presence, on Monday filed for an initial public offering (IPO) to raise Rs 1,700 crore, making it India's biggest retail IPO since 2017.
The IPO will see a fresh issue of shares worth Rs 1000 crore while promoter TS Kalyanaraman will offer a part of his holding to raise Rs 250 crore and private equity giant Warburg Pincus, which owns 24 per cent stake in the jeweller, will raise Rs 500 crore by selling a part of its shares in the IPO. While Kalyanaraman owns 27.41 per cent in the company, the other promoters are his sons TK Seetharam and TK Ramesh own 22.17 per cent stake each in the jeweller.
D-Mart's Rs 1870 crore IPO in March 2017 was the previous biggest retail share offering. The previous listing by a jeweller was in December 2012 when PC Jewellers hit the market with a Rs 600 crore.
Founded by Kalyanaraman in 1993 with a single showroom in Thrissur, Kalyan Jewellers now has 107 showrooms located across 21 states and union territories in India. It also has an international presence with 30 showrooms located in the Middle East as of June 30, 2020.
In fiscal 2019-20, Kalyan Jewellers revenue from operations of stood at Rs 10,181 crore, a modest increase of 3.73 per cent from previous year's Rs 9,814 crore. Kalyan Jewellers also reported a profit of Rs 142.27 crore as compared to a loss of Rs 4.86 crore in 2018-19.
Kalyan Jewellers, which filed the draft prospectus for the IPO with the stock market regulator Securities and Exchange Board of India (Sebi) has one year's time to launch the IPO.
Private equity giant Warburg Pincus had invested around Rs 1,700 crore in two tranches in Kalyan Jewellers. In 2014, PE firm invested Rs 1,200 crore in 2014, followed by a second smaller round of Rs 500 crore in 2017.
The global coordinators and book running lead managers to the IPO are Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets.