Kalyan-Jewellers-India-Limited-IPO-Elite
IPO-Note Kalyan Jewellers India Limited
Rs-86-Rs 87 per Equity share Recommendation: Listing Gain

Kalyan Jewellers is one of the largest jewellery companies in India. Kalyan Jewellers design, manufacture and sell a wide range of gold, studded and other jewellery products across various price points ranging from jewellery for special occasions, such as weddings, which is their highest-selling product category, to daily-wear jewellery. As of December 31, 2020, the company had 107 showrooms across 21 states and union territories in India and 30 showrooms in the Middle East. The company also selling its jewellery products through online platform at www.candere.com.

open-demat-online

Kalyan Jewellers India Limited IPO

Wants To Apply Online

 

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                                                                                        Issue Details
ects of the issue ·          Funding working capital requirements

 of  Company

·           General corporate purposes

Issue Size Total issue Size -Rs. 1175Cr.

Fresh Issue – Rs 800  Cr.

Offer for Sale – Rs. 375 Cr.

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 86 – Rs. 87
Bid Lot 172 shares
Listing at  

BSE, NSE

Issue Opens: 16th March, 2021 – 18th  March, 2021
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer

 

Financial Performance:

Financial- Performance- Kalyan-Elite

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoter Group 67.99% 60.53%
Public 32.01% 39.47%
Source: RHP, EWL Research

Check Kalyan Jewellers India Limited IPO Allotment Status

Kalyan Jewellers India Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To Kalyan Jewellers India Limited  IPO  Allotment Status
  2. Go to Application Status
  3. Select IPO as Kalyan Jewellers India Limited
  4. Enter your PAN Number or Application Id or DP Client Id.

 

Kalyan Jewellers India Limited  IPO

Application Form

 

Strengths:

  • Established brand built on the core values of trust and transparency

  • One of India’s largest jewellery companies with a pan-India presence

  • Hyperlocal strategy enabling to cater to a wide range of geographies and customer segments

  • Wide range of product offerings targeted at a diverse set of customers

Key Highlights:

  • Revenue from operations degrew at a CAGR of 2.14% during FY18-FY20 due to the flood in kerala in FY19 and low growth of 3.3% in FY20

  • Incurred a loss of Rs. 4.86 Crore in Fiscal 2019 and a loss of Rs.79.94 Crore in the nine months ended December 31, 2020.

  • EBITDA Margins declined from 7.3% in H1FY20 to 6.65% in H1FY21 due to lower decline in other expenses as compared to revenue.

  • Gross Profit Margin of the company increased from 16.23% in H1FY20 to 18.10% in H1FY21.

  • South India Region contributes 50.08% to the total revenue of the firm.

Risk Factors:

  • The principal raw material of the company is gold and is the largest component of expenses, so fluctuations in the price of gold can have an effect on business.

  • Have incurred losses in the FY19 and H1FY21 and had negative cash flows in the nine months ended December 31, 2020.

  • Business is susceptible to regional conditions in South India.

  • Income and sales are subject to seasonal fluctuations.

  • The operations located in countries in the Gulf Cooperation Council (GCC), which contributes around 20% of revenues, is subject to risks associated with foreign ownership restrictions

Outlook:

Kalyan Jewellers is operating as a hyperlocal jewellery company, its grassroots “My Kalyan” customer outreach and service centre network is another key element of hyperlocal strategy. The company has 1.8% share of the overall jewellery market and 5.9% share of the organized jewellery market. Indian jewellery business contributed 78.19% to the company’s revenues in FY20.The company is intended to increase the sales of studded jewellery as a proportion of overall sales.  Plain gold jewellery typically has gross margins ranging from 10% to 14%, while diamond-studded jewellery has gross margins ranging from 30% to 35%.  Revenue from sales of studded jewellery increased from 20.65% of revenue in FY18 to 23.36% of in FY20. Net debt to equity ratio of the company increased from 0.87 in 9MFY20 to 1.12 in 9MFY21. At the higher end of the price band of Rs. 87, the stock is offered at a PE multiple of 56.1x on FY20  Post issue EPS of Rs. 1.54  which is discount to its peers. We would recommend Listing Gain to this IPO considering risk factors and financials of the company.

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