Kalyan Jewellers IPO witnesses 56% subscription on Day 1; retail portion booked 1.10 times

The IPO of Kalyan Jewellers, one of India’s largest jewellers, witnessed a subscription of 56 percent on the first day of bidding. The retail portion of the issue which will close on 18 March has been booked 1.10 times.

Overall, against the offer size of 9.57 crore shares, so far bids for 5.72 crore equity shares have been received, Moneycontrol.com reported.

Kalyan Jewellers is looking at raking in Rs 1,175 crore through the public offer. It has already garnered Rs 352 crore from anchor investors on 15 March. The IPO is made up of an offer for sale of Rs 375 crore by existing shareholders and a fresh issue of Rs 800 crore.

The promoter TS Kalyanaraman will sell shares worth Rs 125 crore, investor Highdell Investment — a Mauritius-based private equity funds, belonging to the Warburg Pincus group — will put off Rs 250 crore worth of shares via the offer for sale. The company has reserved Rs 2 crore worth of shares for its employees.

Half of the issue size has been reserved for qualified institutional buyers. While 15 percent has been set aside for non-institutional investors, and 35 percent is for retail investors, a report in LiveMint.com, said.

Bids can be made by investors for a minimum of 172 equity shares and in multiples of 172 equity shares thereafter. This takes the minimum application size to Rs 14,964 at the higher end of the price band.

The proceeds from the fresh issues will be spent towards its working capital requirements and general corporate purposes, the company said.

According to News18.com, the allotted shares will be credited to the Demat accounts of eligible investors by 25 March, as per the company’s schedule mentioned in the prospectus. The shares will get listed on BSE and NSE, 26 March onwards.

Axis Capital, Citigroup Global Markets India, ICICI Securities, SBI Capital Markets and BOB Capital Markets are serving as the lead managers of the public issue. Link Intime India Private Ltd is the registrar.