Kalyan Jewellers IPO open: Why are Brokerage firms asking investors to subscribe?
Today, Kalyan Jewellers IPO opened for subscription. This Warburg Pincus group-backed jeweller is expected to raise Rs 1,175 crore through an initial public offer (IPO). The company has priced its shares in a band of Rs 86-87 per piece. It will close on March 18.
There are some brokerage firms that have recommended investors to subscribe to this IPO. Below are the details:
Geojit
Kalyan Jewellers, incorporated in 1993 by founder T S Kalyanaraman, is one of the largest jewellery companies in India based on revenue in FY20 (source: Technopak Report) with 5.9 per cent share in organised market. Furthermore, their shareholders include Highdell Investment Ltd (Mauritius based private equity funds), belonging to the Warburg Pincus group. It has a pan India presence with 107 showrooms located across 21 states and union territories in India and also has an international presence with 30 showrooms located in the Middle East as on December 31, 2020. High gold inventory of Rs 5,168 crore as of December 2020, with average annual turnover of 208 days during FY18 to FY20, adds support to valuations. Current Debt -Equity ratio (D/E) is 2.1, post IPO D/E will reduce.