Kalyan Jewellers shares nosedive after Warburg Pincus said to have sold stakes in company at 7% discount
According to the Zee Business report, Warburg Pincus, one of the key investors in Kalyan Jewellers, likely offloaded a 2.5 per cent stake in the company through a block deal on Tuesday.
Shares of Kalyan Jewellers India – gems, jewellery and watches maker – have tumbled to as low as 11 per cent to Rs 105.60 per share on the BSE during Tuesday’s session as nearly 2.5 per cent of the company's equity changed hands on the counter through block deals.
According to the Zee Business report, Warburg Pincus, one of the key investors in Kalyan Jewellers, likely offloaded a 2.5 per cent stake in the company through a block deal on Tuesday. Around 2.62 crore shares were said to be sold at a floor price of Rs 110 apiece – at a 7 per cent discount.
The block deal size is said to be Rs 288 crore size and around 60 days lock-in period may be applicable, Zee Business report further noted.
At around 12:15 PM; Kalyan Jewellers shares quoted Rs 108.45 per share, down Rs 10.30 or 8.67 per cent from Monday’s closing price of Rs 118.75 per share.
The 52-week high-low range of stock is Rs 134 – Rs 55 per share.
Kalyan Jewellers stock has underperformed the market by falling 13 per cent against a nearly 7 per cent fall in the Nifty50. The 52-week high-low range of stock is Rs 134 – Rs 55 per share.
Kalyan Jewellers made its market debut on March 26, 2021, at an issue price of Rs 87 a share. Since listing, the stock grew around 45 per cent, while it has nearly doubled investors' money as the scrip jumped 84 per cent in one year against a 1.5 per cent fall in the benchmark index.
According to the ICICI Securities report, a Hike in custom duty on gold has likely resulted in a higher profit pool for players accessing gold through informal channels, this has created higher competitive pressure on national retailers like Kalyan Jewellers.
Many national retailers, including Kalyan Jewellers moved to one nation one-gold-price policy under which the gold rate charged by them has been the lowest, the brokerage said, adding that they have hiked making charges and chosen to pass on 1/3rd benefit due to which pressure on margin likely.
The Kerala-headquartered Kalyan Jewellers has over 150 showrooms spread across India and GCC as of March 31st, 2022. The company Kalyan offers an array of traditional and contemporary jewellery designs in gold, diamonds, precious stones and other precious metals.
Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
01:56 PM IST