Kalyan Jewellers IPO to open on 16 March; price band fixed at Rs 86-87 per share

The three-day initial public offering (IPO) of Kalyan Jewellers India Limited will begin on 16 March in a bid to raise Rs 1,175 crore.

The issue will close for subscription on 18 March. It includes a fresh issue of equity shares worth Rs 800 crore and offer-for-sale (OFS) worth Rs 375 crore by promoters and shareholders. Promoter TS Kalyanaraman and Highdell Investment Ltd will sell up to Rs 125 crore and Rs 250 crore worth shares, respectively.

The preliminary papers for IPO were filed by the company in August 2020, while it received the nod from the Securities and Exchange Board of India (Sebi) in October 2020.

Here are the details required by an investor before bidding for the IPO:

· The price band of the shares has been fixed at Rs 86-87 per share of the face value of Rs 10 each.
· A minimum of 172 equity shares and in multiples thereafter can be bid by the investors, which will imply a minimum investment of Rs 14,964, at the upper price band. For the qualified institutional buyers (QIBs) 50 percent of the issue will be reserved, followed by 35 percent for retail investors and 15 percent for non-institutional investors. Also, shares worth Rs 2 lakh will be reserved for eligible employees and will be offered with a discount of Rs 8 per share for those bidding in the employee reservation portion.
· The objective of the IPO is to use the proceeds to finance business working capital requirements and to meet general corporate purposes.
· There are five lead managers of the IPO — Axis Capital Limited, BOB Capital Markets Limited, Citigroup Global Markets India Private Limited, ICICI Securities Limited and SBI Capital Markets Limited.
· The registrar of the offering is Link Intime India Private Ltd.
· Investors can apply for the IPO using either UPI or ASBA as a payment method.

Kalyan Jewellers was started in 1993 by TS Kalyanaraman in Kerala and by the end of June 2020, the company had 107 showrooms across 21 states and union territories in the country, and 30 showrooms in the Middle East. The company is one of India's largest jewellery companies and designs, manufactures and sells a wide range of gold and other jewellery products.

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