Commodities

Warburg Pincus-backed India's Kalyan Jewellers seeks $160 mln in IPO

Credit: REUTERS/AMIT DAVE

Warburg Pincus-backed Kalyan Jewellers said it aimed to raise 11.75 billion rupees to use as working capital through an initial public offering next week.

MUMBAI, March 11 (Reuters) - Warburg Pincus-backed Kalyan Jewellers said it aimed to raise 11.75 billion rupees ($161 million) to use as working capital through an initial public offering (IPO) next week.

Kalyan, leader of a domestic market that also includes Titan TITN.NS, Tribhovandas Bhimji Zaveri Ltd. TBZL.NS and regional players, opened its first showroom in the southern state of Kerala in 1993 and now has 107 showrooms in India and 30 stores in the Middle East.

The IPO comprises a fresh issue of equity shares of up to 8 billion rupees and an offer for sale of shares worth 3.75 billion by promoters and existing shareholders, the company said in a statement.

India is the world's second biggest consumers of gold and consumption is expected to rebound in 2021 after falling to its lowest in 26 years last year as pent-up demand and higher economic growth are seen boosting sales.

In the fiscal year ended in March 2020, the jeweller's revenue stood at 101 billion rupees and net profit was 1.42 billion rupees, it said.

The company, which derives 78% of its revenue from domestic operations, will offer shares at about 86-87 rupees. The IPO will open on March 16 and the stock is expected to start trading on Indian exchanges from March 26.

($1 = 72.6490 Indian rupees)

(Reporting by Rajendra Jadhav; editing by John Stonestreet)

((rajendra.jadhav@thomsonreuters.com; +91-22-68414378 ; Reuters Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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