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.
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 |
Companies | Type | Bidding Dates | |
Regular | Opens 06 Nov | ||
Regular | - | ||
Regular | - | ||
Regular | - | ||
Regular | - |
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 |
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.
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.
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:
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.
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.
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.
Kalyan Jewellers India Limited proposes to utilize the net proceeds from the fresh issue for:
You can apply for the Kalyan Jewellers India Limited IPO by using one of these two methods of payment:
Here are some things that you need to keep in mind before investing in the Kalyan Jewellers IPO:
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.