Kalyan, ESAF to raise Rs 2,750 cr through IPO in new year

KOCHI: The new year will see two initial public offerings (IPO) from Kerala-based companies, collecting a total of Rs 2,750 crore from the market. While Thrissur-based Kalyan Jewellers will raise Rs 1,750 crore, eSAF Small Finance Bank, also from Thrissur, is expected to raise about Rs 1,000 crore.

Though the timing of the issue is not finalised, banking sources said both the issues are expected to hit the market in the January-March quarter itself. The IPO by retail jeweller Kalyan, in fact, is billed as India’s biggest retail IPO since 2017. According to Prime Database, which tracks fund raising by companies, the stock market will see companies collecting funds to the tune of Rs 41,844 crore in 2020-21, the biggest since 2010-11.

The initial share offer by Kalyan Jewellers will see a fresh issue of shares worth Rs 1,000 crore while promoter T S 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. Kalyanaraman owns 27.41 per cent in the company.

The other promoters in the jeweller are his sons TK Seetharam and TK Ramesh. Both of them own 22.17 per cent stake each in the company. eSAF Small Finance Bank, according to sources, will raise Rs 800 crore through primary share offering and another Rs 176 crore through offer for sale (OFS), as per the Draft Red herring Prospectus (DRhP) filed with the Securities and Exchange Board of India.

While the founder Paul Thomas individually hold 10 per cent stake in the micro-finance company, another 65.63 per cent is held by his family. PNB MetLife owns 4.99 per cent, Bajaj Allianz Life 4.08 per cent and PI Ventures 2.04 per cent.