24 August 2020

Kalyan Jewellers IPO Analysis

Kalyan Jewellers is a Kerala based jewellery retail firm that currently has 135 showrooms in India and abroad. The company employs nearly 8000 people. The company was founded by T.S. Kalyanaraman in 1993. The Kalyan Jewellers IPO is the first jewellery company IPO in nearly 8 years.


As per ICRA reports, the company reported a PAT of Rs 50 Crores in FY19. The company competes with established brands like Tanishq (Titan), Joy Alukas and few other corporates. The branded players are continuously gaining share from the unbranded players in the otherwise fragmented jewellery market in India. Pre-Covid, the organised jewellery market was growing at 10% to 11% p.a. Multiple market researches have indiciated a grwoing preference for branded jewellery even in the smaller cities and towns. The industry has a low operating profit margin of around 5%.

The management has stated that both footfalls and sales have started to reach last years numbers now in most stores. Also, almost 80% of the company's stores have resumed operations. We will update this section as when the documents are made available for the IPO.


Kalyan Jewellers has filed a DHRP with SEBI for a Rs 1.750 Crore IPO. The indicative breakup of the IPO is:
  • Fresh issue: Rs 1,000 Crores
  • Warbus Pincus exit: Rs 500 Crores
  • Promoter stake sale: Rs 250 Crores
The Kalyan Jewellers IPO seems well timed as the gold prices are rising, thereby generating a lot of investor fancy towards Gold. The stock market has also revived after the Covid-19 crash of March and April, indicating that investors are not risk averse at the moment.


The Kalyan Jewellers IPO dates are yet to be announced.

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