KOCHI: Despite the boom in recent initial public offerings (IPOs), shares of Thrissur-headquartered Kalyan Jewellers are still trading at a discount of 23.10 per cent even after four months of its listing. The shares of the jeweller, which was priced at Rs 87 apiece, closed at Rs 66.90/share on Monday.
To put in perspective, BSE's IPO index has given a return of 57.60 per cent year-to-date, and an eye-popping 119.46 per cent in the last 12 months. The stock markets in general are also on a bull run. The bellwether stock indices of Nifty and Sensex have shot up by 44.98 per cent and 43.13 per cent respectively in the last 12 months.
The subdued performance of Kalyan Jewellers has made investors poorer by Rs 2,070.40 crore, going by the market capitalisation of the company. At the IPO price, Kalyan Jewellers was valued at Rs 8,961.46 crore. At Monday's stock price, the market capitalisation of the company has come down to Rs 6,891.05 crore.
Kalyan Jewellers' Rs 1,175 crore IPO in March was subscribed by over 2.5 times. Some of the IPOs which have caught the investors' eye after the listing include Zomato (up 51% from the offer price), Rolex Rings (up 38.78%) and Tatva Chintan Pharma (up 95%).
Company officials were unavailable for comments.
In a recent report, Axis Capital, however, said the company's "strong brand, hyperlocal strategy and accelerated store expansion place Kalyan well to capitalise on industry tailwind of the shift to organised players."