Warburg Pincus sells 6.81% stake in Kalyan Jewellers; to sell 2.36% to promoter

Global investment firm Warburg Pincus has sold a 6.81 per cent stake in Kalyan Jewellers through block deals on stock exchanges and will sell the remaining 2.36 per cent stake to the company's promoter and MD TS Kalyanaraman for Rs 1,300 crore.

Warburg Pincus had a 9.17 per cent stake in Kalyan Jewellers and it will completely exit from the company once the agreement to sell the remaining 2.36 per cent to promoters gets concluded.

"Warburg Pincus, a private equity partner of Kalyan Jewellers India Ltd since 2014, has sold a 6.81 per cent stake in the company earlier today. The remaining 2.36 per cent of Warburg Pincus' holding will be acquired by TS Kalyanaraman, the promoter of Kalyan Jewellers, for Rs 1,300 crore," the company said in a statement.

A share purchase agreement was executed on Wednesday between the promoter and Warburg Pincus' affiliate Highdell Investment Ltd at a price of Rs 535 per share.

This transaction will increase the promoter and promoter group's shareholding in Kalyan Jewellers from 60.59 per cent to 62.95 per cent.

The acquisition is expected to close within the next four weeks, following the completion of financing arrangements. The transaction will be executed as an off-market deal in accordance with the purchase agreement.

"Warburg Pincus has played a crucial role in Kalyan Jewellers' growth and expansion across India and the Middle East. The private equity firm initially held a 30 per cent stake in the company prior to its IPO. Over time, they have reduced their shareholding as part of a strategic exit plan.

"This transaction represents the final step in their planned divestment process. We are grateful for our partnership with Warburg Pincus, which has been a driving force behind many of our achievements over the past decade," said Kalyanaraman.

Kalyan Jewellers is one of the leading players in the jewellery market. It has operations in India and overseas.