Kalyan Jewellers Limited IPO – Date, Price, Review & Details

Maitri Parikh

View – Long Term Investors Can Apply

Issue Highlights

Kalyan Jewellers is one of India’s largest Jewellery companies, hitting the market to raise INR 1,175 Crs through this offer.

It designs, manufactures, and sell a variety of gold, embossed and other jewellery products.

Equity shares worth INR 2 crores are reserved for eligible employees.

Issue Details

Company Strengths

  • Established brand built on the core values of trust and transparency.
  • One of India’s largest jewellery companies with a pan-India presence
  • Hyperlocal strategy enabling to cater to a wide range of geographies and customer segments
  • Extensive grassroots “My Kalyan” network with strong distribution capabilities
  • Visionary Promoters with strong leadership qualities
  • Wide range of product offerings

Valuation

The company is getting listed at a PE of 51.2 on the basis of FY 20 EPS, at upper price band, against sector PE of 11.91.

Issue Break-Up

Utilization of Fresh Issue Funds

Background highlights of the company in brief

  • Incorporated in the year 1993 with only a single showroom in Thrissur, Kerala, Kalyan Jewellers Limited has now become one of the largest jewellery companies in India based on revenue as of March 31, 2020, according to the Technopak Report.
  • The company has around 107 showrooms located across 21 states & union territories in India, and also have an international presence with 30 showrooms located in the Middle East as of December 31, 2020.
  • Its geographical bounds has reached and is expanding into new markets across India, GCC, USA, Singapore, Malaysia, Sri Lanka and more.
  • The company’s total showrooms have increased from 77 as of March 31, 2015 to 137 showrooms as of December 31, 2020, and it intend to continue to open additional showrooms as it expects significant opportunity for further penetration in its existing markets as well as in new markets, primarily in India.
  • The company designs, manufactures and sells a wide range of gold, studded and other jewellery products across various price points ranging from jewellery for special occasions, such as weddings, which is its highest-selling product category, to daily-wear jewellery.
  • Along with gold, it also offers an array of traditional and contemporary jewellery designs in diamonds, precious stones and other precious metals.
  • 74.77% and 75.88% of the company’s revenue from operations in Fiscal 2020 and in the 9M December 31, 2020 respectively, was from the sale of gold jewellery, 23.36% and 21.72%, respectively, was from the sale of studded jewellery (which includes diamonds and precious stones), and 1.87% and 2.40%, respectively, was from the sale of other jewellery.
  • The company’s “My Kalyan” network consists of multiple service centres that are located in a wide radius around most of its showrooms.
  • As of December 31, 2020, the company had 766 “My Kalyan” locations and 2,699 dedicated “My Kalyan” employees.
  • The company’s “My Kalyan” network contributed 17.02% and 20.82% of its revenue from operations in India and 30.88% and 36.02% of the enrolment to its purchase advance schemes in India in Fiscal 2020 and in the 9M December 31, 2020 respectively.
  • The company was awarded the Superbrands title of being ‘India’s most preferred jewellery brand in Fiscal 2020.

Briefing about directors & key managerial personnel

Briefing Financials

Balance Sheet

Statement of Profit and Loss

Key Ratios

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