Kalyan Jewellers India Limited IPO (Kalyan Jewellers IPO)

16 March 2021
12 min read
Kalyan Jewellers India Limited IPO (Kalyan Jewellers IPO)

There are some interesting IPOs scheduled to be launched in 2021. One such IPO is the Kalyan Jewellers India Limited IPO that is being launched on March 16, 2021. Here is all you need to know about the issue.

Kalyan Jewellers India Limited IPO Details

IPO Date March 16, 2021, to March 18, 2021
Issue Type Book Built Issue IPO
Issue Size Equity Shares of Rs.10 totalling up to Rs.1175.00 Crore
Fresh Issue Equity Shares of Rs.10 totalling up to Rs.800.00 Crore
Offer for Sale Equity Shares of Rs.10 totalling up to Rs.375.00 Crore
Face Value Rs.10 per equity share
IPO Price Rs.86 to Rs.87 per equity share
Market Lot 172 shares
Min Order Quantity 172 shares
Listing At BSE, NSE

Kalyan Jewellers India Limited IPO Tentative Timetable

Bid/Offer Launch date March 16, 2021
Bid/Offer Last date March 18, 2021
Basis of Allotment finalization date March 23, 2021
Initiation of Refunds March 24, 2021
Credit of Shares to Demat Acct March 25, 2021
IPO Shares Listing Date March 26, 2021

About the company – Kalyan Jewellers India Limited

Kalyan Jewellers India Limited is one of the largest jewellery companies in India based on revenue as of March 31, 2020. It is a pan-India jewellery company with 107 showrooms located across 21 states and union territories in India, and 30 showrooms located in the Middle East. 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, to daily-wear jewellery.

One of the key strengths of Kalyan Jewellers is its ability to operate as a hyperlocal jewellery company. It tries to cater to the unique preferences of its customers that can vary significantly by geography and micro-market, through its local market expertise and region-specific marketing strategy and advertising campaigns. The company also engages local artisans to manufacture jewellery that suits local tastes. It is primarily due to this approach that Kalyan Jewellers has managed to become one of the few pan-India jewellery companies in India.

Kalyan Jewellers was one of the first jewellery companies in India to voluntarily have all of its jewellery BIS hallmarked and accompanied by a detailed price tag detailing the price of various components used in the final product. This initiative along with customer education and awareness campaigns around the lack of transparency in the Indian jewellery industry has helped the brand become a trusted name in jewellery in India.

Growth Story of Kalyan Jewellers India Limited

Kalyan Jewellers India Limited was established in 1993 and opened its first showroom in Thrissur, Kerala. The next ten years was the establishment phase of the company where it focused on building a trustworthy brand based on transparency and create a loyal base of customers. Once the brand was established, the company started opening its showrooms across various states in southern India.

In 2004, it opened its first showroom outside Kerala in Coimbatore, Tamil Nadu. By 2010, it had entered the Karnataka and Telangana markets and launched its customer outreach initiative – My Kalyan. In 2012, started opening showrooms outside southern India and launched one in Ahmedabad, Gujarat. The next year (2013), it entered the markets in West India (Maharashtra) and the Middle East.

In 2014, the company received investment from Highdell (Warburg Pincus Group) and it entered the Delhi market. By 2020, the company had established a pan-India presence with 107 showrooms and 30 showrooms in the Middle East.

Financials of Kalyan Jewellers India Limited

Here is a quick look at the financial performance of Kalyan Jewellers India Ltd over the last 3 years:

Mar 2020 Mar 2019 Mar 2018
Total Assets 8218.68 8059.91 8551.23
Total Income 10181.02 9814.03 10580.20
Total Expenses 9960.13 9793.10 10366.41
Profit After Tax 142.28 -4.86 140.99
Long-Term Debt 84.84 107.50 178.61

All amounts in INR Crore

A quick glance at the financial performance of Kalyan Jewellers over the last three years offers the following insights:

  • The financial performance of the company has been inconsistent from 2018 to 2020.
  • In 2019, Kalyan Jewellers adopted an experimental strategy leading to a drop in its revenue. It was withdrawn in 2020 and the revenue increased again.
  • In 2019, severe floods hit the southern part of India affecting the demand for gold jewellery too.
  • The long-term debt has decreased by a CAGR of around 31%.

SWOT Analysis

According to a report by Statista, in 2020, the global jewellery market size was around $230 billion and is expected to grow to $292 billion by 2025 – a CAGR of around 5%. Also, China, India, the United States, and Japan are the four leading players in this market. In the fiscal year 2020, the size of the Indian jewellery retail sector was around $64 billion. While the organized part of this sector contributed to around 32%, the major share was held by the unorganized segment consisting of local goldsmiths and jewellers.

While the pandemic is expected to reduce the demand for jewellery by up to 30%, the next four years can see growth at a projected CAGR of 19%. The larger players in the organized space are expected to take some market share away from the smaller players in the unorganized segment due to weak balance sheets and their inability to sustain during the lockdowns. 

1. Strengths of Kalyan Jewellers India Limited

  • Kalyan Jewellers India Limited is an established brand built on the core values of trust and transparency. With more than five lakh local jewellers and goldsmiths, the Indian jewellery industry has been fragmented and unorganized for a long time. Kalyan Jewellers has strived to establish a brand that is associated with trust and transparency.
  • Kalyan Jewellers has a pan-India presence and is one of the country’s largest jewellery companies based on revenue as of March 31, 2020. It has 107 showrooms across India and 30 in the Middle East.
  • The company has a hyperlocal strategy where it localizes its product portfolio, brand communication & strategy, showroom experience, and My Kalyan network, according to each market segment.
  • The ‘My Kalyan’ network has extensive grassroots with strong distribution capabilities enabling deep customer outreach. Currently, there are 761 ‘My Kalyan’ locations across India.
  • The company has visionary promoters with strong leadership and a demonstrated track record supported by a highly experienced and accomplished senior management team and board of directors.
  • The company’s products span jewellery for special occasions, such as weddings, to daily-wear jewellery. Further, its product portfolio caters to a wide range of price points. It has numerous sub-brands for specific customer niches like ‘Muhurat’, ‘Aishwaryam’, ‘Mudhra’, ‘Sankalp’, ‘Nimah’, and ‘Anokhi’.
  • Kalyan Jewellers has established a robust set of operational and control processes to manage its business operations and to support its future growth at both the showroom and corporate level. Given the high-value nature of its jewellery, the inventory management and internal audit procedures are critical to the success of its business.

2. Weaknesses of Kalyan Jewellers India Limited

  • The Indian jewellery market is highly competitive with many large players offering similar products. Hence, a small drop in performance can lead to ceding a huge market share.
  • The COVID-19 pandemic has impacted the company’s revenues.
  • Currently, Kalyan Jewellers has total borrowings of Rs.3640.31 crores.

3. Peer Comparison

Here is a quick look at the performance of Kalyan Jewellers in comparison to its peers on some key aspects for FY 2020. While the DRHP lists Titan Company Limited as the only peer, we will take a few more names to offer a better perspective:

Profit After Tax Debt to Equity Ratio Return on Net Worth (RoNW)
Kalyan Jewellers India Limited 142.28 0.69% 6.63%
Titan Company Limited 1518.00 0.09% 23.34%
TBZ 21.42 1.14% 4.46%
Asian Star 63.40 36% 1.48%
Vaibhav Global 190.26 (14.87%) 26%

All amounts in INR Crore

As you can see, compared to its listed peers, Kalyan Jewellers has performed better than its peers in many aspects. 

4. Opportunity to investors – valuation of the IPO

Let’s look at the valuation factors of Kalyan Jewellers in comparison with its peers:

Earnings Per Share (diluted) P/E Ratio
Kalyan Jewellers India Limited 1.49
Titan Company Limited 17.09 61.04
TBZ 3.21 24.85
Asian Star 39.61 16.66
Vaibhav Global 57.92 36.30

As per the peer group selected by Kalyan Jewellers in the RHP, the average PE Ratio is 34.71. If we look at the price band of Kalyan Jewellers IPO and calculate the P/E Ratio at the higher price of Rs.87, then we get a value of P/E Ratio of 58.39. Therefore, the IPO is overvalued.

5. Risk Factors

  • The business and results of operations of Kalyan Jewellers are influenced by the strength of its brands, including the level of consumer recognition and perception of its brands. If the company fails to continue to maintain and develop its brands, its results of operations can get impacted.
  • The recent outbreak of the novel coronavirus could have a significant effect on the company’s business, and could negatively impact its business, revenues, financial condition, and results of operations.
  • The company’s success depends on its ability to identify, originate, and define product and market trends, both on a pan-India, international, and more local level, as well as to anticipate, gauge, and react to rapidly changing consumer demands in a timely manner. Failure to do so can impact its business and the results of operations.
  • Kalyan Jewellers may be unable to maintain or establish arrangements with contract manufacturers and suppliers through whom it manufactures its products and procures raw materials, and may experience other disruptions or quality control risks in the operations of such parties.
  • Kalyan Jewellers endeavours to open showrooms in optimal locations and generally consider a relevant location’s demographics, spending capacity, economic conditions, cost-benefit analysis, and proximity to its competitors’ showrooms. Its ability to attract customers depends on the success and visibility of its showroom.
  • The company’s business is dependent on the trust its customers have in its brand and the quality of its products. Any negative publicity regarding the company, its brand, products, or the jewellery industry generally could adversely affect its reputation and its results of operations.
  • The company may not be able to successfully adapt its systems, including internal controls and procedures over financial reporting, as a result of increasing business complexity.
  • The current geographic concentration of the company’s operations creates an exposure to local economies, regional downturns, and severe weather or other catastrophic occurrences.
  • Changes or a downturn in economic conditions, in particular in the company’s principal markets, may affect consumer spending, including on its products.
  • The income and sales of Kalyan Jewellers are subject to seasonal fluctuations and lower-income in a peak season may have a disproportionate effect on its results of operations.
  • Kalyan Jewellers obtains a part of its gold requirement through metal gold loans which are subject to RBI regulations in India. Any adverse change in the regulations governing metal gold loans may adversely affect its financial condition and results of operations.
  • The majority of the company’s existing showrooms and “My Kalyan” centres are located on leased properties. If the company fails to renew leases for its existing or new showrooms or My Kalyan centres on commercially acceptable terms, then its profitability and results of operations could be adversely affected.
  • Kalyan Jewellers changes its jewellery designs on a regular basis and does not register such designs under the Design Act, 2000. As such, it would be difficult for it to enforce intellectual property rights in its designs, and if its competitors copy the designs, in particular the designs of the products available on its website or the designs given to third-party contractors, it could lead to a loss of revenue, which could adversely affect its results of operations and financial condition.
  • The gold purchase represents the largest component of the company’s expenses, and fluctuations in the price of gold can have an effect on its business, results of operations, and financial condition. The company also uses diamonds, other precious and semi-precious stones, pearls, platinum, silver, and other raw materials, including various alloys to create jewellery, which is also subject to price fluctuations.

6. Objects of the Offer

Kalyan Jewellers India Limited proposes to utilize the net proceeds from the fresh issue for:

  • Funding working capital requirements; and
  • General Corporate Expenses

7. Promoter/s of Kalyan Jewellers India Limited IPO

  1. Mr. T.S. Kalyanaraman
  2. Mr. T.K. Seetharam
  3. Mr. T.K. Ramesh

How can you apply for the Kalyan Jewellers India Limited IPO?

You can apply for the Kalyan Jewellers India Limited IPO by using one of these two methods of payment:

  1. ASBA – available via the net banking interface of your bank account. Almost all banks offer this facility
  2. UPI – available with brokers who do not offer banking services. 

Things to keep in mind before investing in the Kalyan Jewellers IPO

Here are some things that you need to keep in mind before investing in the Kalyan Jewellers IPO:

  1. The IPO seems to be overvalued based on peer comparison. You might want to analyze the intrinsic value of the company before making a decision.
  2. The jewellery market is highly competitive and a small drop in performance or brand image can impact the company’s business to a large extent
  3. Kalyan Jewellers has a heavy debt burden with the total outstanding debt amounting to Rs.3640.31 crores.


Q1. What is the Kalyan Jewellers India Limited IPO?

The Kalyan Jewellers India Limited IPO is a Main Board IPO for the issue of equity shares having the face value of Rs.10 totalling up to Rs.1175.00 crores. The registrar for the IPO is Link Intime India Private Limited and the shares are proposed to be listed on the BSE and NSE.

Q2. What are the open and close dates of the Kalyan Jewellers India Limited IPO?

The Kalyan Jewellers India Limited IPO opens on March 16, 2021, and closes on March 18, 2021.

Q3. What are the lot size and minimum order quantity of the Kalyan Jewellers India Limited IPO?

The lot size of the Kalyan Jewellers IPO is 172 shares. Also, the minimum order quantity is 172 shares.

Q4. What are the allotment and listing dates of the Kalyan Jewellers India Limited IPO?

According to the DRHP, the basis of allotment will be finalized by March 23, 2021. Further, investors can expect to receive the credits in their Demat accounts by March 25, 2021.


The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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