Kalyan Jewellers India IPO date, issue size, price band, bid lot, other details here | ICICI Securities Highlights

Kalyan Jewellers India IPO date: Kalyan Jewellers India IPO is a Fresh Issue of Equity Shares aggregating upto Rs 800 cr and Offer for sale of Equity Shares aggregating upto Rs 375 cr aggregating upto Rs 1175 cr. The Issue size is of Rs 1175 cr. Face value of the Kalyan Jewellers India IPO is Rs 10. Employee Reservation is Equity shares aggregating upto Rs 2 cr. The Price band is Rs 86 – Rs 87. The Bid Lot is of 172 Shares and in multiple thereof. The Employee Discount is Rs 8/ per share. Post Issue Implied Market Cap of Kalyan Jewellers India IPO will be Rs 8868 –  Rs 8961 Cr, The Book Running Lead managers are Axis Capital, Citigroup Global, ICICI Securities, SBI Capital Markets and BOB Capital Markets. The Registrar is Link Intime India. The Issue opens on Tuesday, 16th March’2021 and closes on Thursday,18th March’2021.
 
Established in 1993, Kalyan Jewellers is one of India’s largest jewellery companies having 6% market share in the organised jewellery space. The company designs, manufactures and sells a wide range of jewellery products at varying price points for uses ranging from jewellery for special occasions such as weddings, which is its highest selling product category, to daily-wear jewellery.

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Over the years, Kalyan Jewellers has successfully expanded to become a pan-India player with 107 showrooms across 21 states in India and 30 showrooms located in the Middle East. One of the key strengths of the company has been to operate as a hyperlocal jewellery player. It endeavours to cater to customers’ unique preferences, which often vary significantly by geography and micro market, through its local market expertise and region-specific marketing strategy and advertising campaigns.

Jewellery consumption patterns in India are highly localised with customer preferences varying significantly by region.

Kalyan Jewellers strives to appeal to a broad base of customers via a multi-faceted hyperlocal strategy by deploying initiatives such as:

a)     localisation of product portfolio
b)    localisation of brand communication and marketing
c)     localisation of showroom experience for customers

Localisation strategy, combined with large scale of operations, allows it to cater to a wide range of customers across geographies, age groups, socio-economic status levels and genders as well as across urban, rural and semi-urban market

Kalyan Jewellers Key risk & concerns:

Inability to maintain brand strength & development of brands
Inability to maintain & establish arrangements with contract manufacturer and suppliers

Kalyan Jewellers Priced at P/E of 63x (post issue) FY20 on upper band:

Kalyan Jewellers has witnessed an improvement in gross margins from 16% in FY18 to 18% in 9MFY21 owing to enhanced share of studded ratio. It has faced headwinds in the past couple of years. For instance, in FY19, revenues were impacted owing to severe floods in south India (60% of revenues) while revenue in FY20 was adversely impacted in Q4 owing to Covid led lockdowns. At Rs 87, the stock is available at 0.9x FY20 market cap/sales and 63x FY20 EPS.