All you need to know about

Kalyan Jewellers India Ltd IPO

Issue Details
Issue Amount : `1,175 Crores
Total shares for sale : 135,057,000 - 136,627,000 Equity Shares
Issue Period : Mar 16, 2021 - Mar 18, 2021
Face Value : �`10 per share
Price Band : `86 to `87
Lot Size : �172 shares and in multiple thereafter
Registrar : Link Intime India Private Limited
Source : BRLM

Offer Breakup
Category Allocation Issue size Issue size
(Shares) (` in crore)

Lower Band Upper Band

QIB 50% 68,197,672 67,413,792 586.50

NIB 15% 20,459,303 20,224,138 175.95

Retail 35% 47,738,372 47,189,655 410.55

Total 100% 136,395,347 134,827,585 1,173.00

Source : BRLM. Employee portion of 2 Cr amount excluded from table

IPO timeline `
Issue opens on: `

16
Tuesday, Mar 16, 2021
Issue closes on:
Thursday, Mar 18, 2021
MARCH

23 Finalization of 24 Refunds/Unblocking
MAR 2021 basis of allotment MAR 2021 ASBA fund

25 Credit of equity 26 Trading

MAR 2021 shares to DP account MAR 2021 commences

Source : BRLM, Dates are tentative

The objective of the offer

01 Funding working capital requirements of

their Company

02 General corporate purposes

Additionally, Kalyan Jewellers expects to achieve

the benefits of listing of their Equity Shares on
the Stock Exchanges and enhancement of their
Company’s brand name and creation of a public
market for their Equity Shares in India.

Source : RHP and DRHP

`
About the company
They are one of the largest jewellery companies in India based on
revenue as of March 31, 2020, according to the Technopak Report.
They were established by their founder and one of the Promoters, Mr.
T.S. Kalyanaraman, who has over 45 years of retail experience, of which
over 25 years is in the jewellery industry. They have since expanded to
become a pan-India jewellery company, with 107 showrooms located
across 21 states and union territories in India, and also have an
international presence with 30 showrooms located in the Middle East
as of December 31, 2020. All of their showrooms are operated and
managed by them. In Fiscal 2020 and in the nine months ended
December 31, 2020, their revenue from operations was ₹10,100.92 Cr
and ₹5,516.70 Cr, of which 78.19% and 86.21% was from India and
21.81% and 13.79% was from the Middle East. Their total showrooms
have increased from 77 as of March 31, 2015 to 137 showrooms as of
December 31, 2020, and they intend to continue to open additional
showrooms as they expect significant opportunity for further
penetration in their existing markets as well as in new markets,
primarily in India. They also sell jewellery through their online platform
at www.candere.com. They 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.
They possess multiple jewellery sub-brands based on target
geographies and themes (Occasions, light wear, bridal wear, casual,
fancy shape etc.. )as shown below
Impact of Covid : Due to a government mandated lockdown in India,
they had to temporarily close all of their showrooms, “My Kalyan”
centres, manufacturing facilities, procurement centres and offices
from mid-March to May 2020. Their operations in the Middle East were
similarly impacted during this period, and given the slowdown in the
general economy of the Middle East countries in which they have
operations, they chose to permanently close seven of their
showrooms. In May 2020, they resumed operations and in June 2020
they opened most of their showrooms. Their pan-India presence,
strong supply chain network and the capabilities and depth of their
management team enabled us to restart their operations quickly after
the lockdowns eased. Furthermore, in the three months ending
December 31, 2020, they generated revenues in their showrooms in
India that were higher than pre-COVID-19 levels and the corresponding
period in Fiscal 2019. They believe the rapid recovery and subsequent
growth in their business is due to following factors

Resilience of wedding-related jewellery, their

01
highest-selling product category

02 Jewellery seen as a store of value and as an investment

03 Preference for safety of organised retail shopping

experience

Furthermore, in the long-term, they expect the impact of the COVID-19

pandemic to further accelerate the shift of the jewellery market from
unorganised players to organised chains such as them, given the
conviction consumers are likely to have in the store experience and
safety protocols businesses like theirs can offer.
Source : RHP and DRHP
Strengths

Established brand built on One of India’s largest Hyperlocal strategy enabling

the core values of trust jewellery companies with a them to cater to a wide range of
and transparency pan-India presence geographies and customer
segments

Extensive grassroots “My Wide range of product Robust and effective internal
Kalyan” network with strong offerings targeted at a control processes to support
distribution capabilities diverse set of customers a growing organisation and
enabling deep customer showroom network with a
outreach pan-India presence

Source : RHP and DRHP

Risks

The continuing impact of The strength of their brands is They may be unable to
the outbreak of the crucial to their success and they respond to changes in
COVID-19 may not succeed in continuing consumer demands and
to maintain and develop their market trends in a timely
brands manner

Inability to maintain or Their ability to attract Their ownership structure in the

establish arrangements with customers is dependent on Gulf Cooperation Council is subject
contract manufacturers and the success and visibility to risks associated with foreign
suppliers Subject to quality of their showrooms ownership restrictions and their
control and disruptions from shareholder arrangements with
these parties operations local shareholders

Source : RHP and DRHP

Important Financials Data
9 months 9 months FY FY FY
(in ` Crore) till Dec till Dec March March March
2020 2019 2020 2019 2018

Total Assets 8,122.99 7,931.03 8,218.68 8,059.91 8,551.23

Total Revenue 5,516.70 7,960.20 10,100.92 9,770.76 10,547.95
from operations
EBITDA 366.62 580.71 760.27 580.34 732.75

Profit after Tax -79.95 94.32 142.28 -4.86 141.00

Source : RHP

Particulars (in INR Crore) FY20 FY19 FY18

Revenue from Operations 10,100.92 9,770.76 10,547.95

Revenue Growth (%) 3.38 -7.37 -

EBITDA 760.27 580.34 732.75

Net Profit for the period 142.28 -4.86 141.00

Net Profit as % to Revenue 1.41 -0.05 1.34

Basic EPS (Rs ) 1.70 -0.04 1.70

RONW (%) 6.63 -0.18 7.23

Source : RHP. Revenue growth for FY 18 not available due to missing details regarding FY 17

Peer Comparison

Name of Total Face Value P/E EPS for EPS for RoNW NAV
the company income for per equity fiscal 2020 fiscal 2020 Fiscal per equity
Fiscal 2020 share (₹) (Basic) (₹) (Diluted) (₹) 2020 share (₹) as at
(₹ in Cr) (%) Mar 31, 2020

Kalyan Jewellers
10,181.02 10 [*] 1.7 1.49 6.63 25.71
India Limited*

Listed Peers

Titan Company Ltd 21,204.77 1 84.23 16.91 16.91 22.38 75.12

Source - RHP. * Financial information for the Company is derived from the Restated Consolidated Financial Information as at and for the
year ended March 31, 2020.

1. All the financial information for listed industry peer mentioned above is on a consolidated basis and is sourced from the
annual report as available of the company for the year ended March 31, 2020 submitted to stock exchanges.
2. P/E ratio is calculated as closing share price (February 23, 2021 BSE) / Basic EPS for year ended March 31, 2020.
3. Basic and Diluted EPS as reported in the annual report of the company for the year ended March 31, 2020.
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company's initial growth story
Based on this financial year’s IPO data, it can be conveniently said that the
country represents a huge appetite for Initial Public Offers (or IPOs). In the
period April 2020 to February 2021, the country’s stock exchanges (both
NSE and BSE combined) witnessed 24 IPOs and raised proceeds worth Rs
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In December some of the most successful IPO launches were for Burger
King which saw a listing day gain of 130.67% and Mrs Bectors which saw a
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Last 10 IPO Performances

Date IPO Name Issue Size Retail Total Issue Price List Price Listing CMP as of Current Gains
(` in crs) Subscription Subscription (in ₹) (in ₹) Gains(%) 08-03-21 (in ₹) (%) 08-03-21

25-Feb-21 Heranba Industries Ltd 600.00 4.82 33.13 627.00 900.00 29.55 749.55 19.55

18-Feb-21 Railtel 819.24 16.78 42.39 94.00 109.00 28.19 154.10 63.94

17-Feb-21 Nureca 100.00 74.29 17.98 400.00 666.65 66.66 602.90 50.73

28-Jan-21 Stove Kraft Ltd 412.63 26.04 18.03 385.00 445.95 15.83 502.20 30.44

25-Jan-21 Home First Finance 1,153.72 6.59 26.66 518.00 527.40 1.81 525.15 1.38

22-Jan-21 Indigo Paints Ltd 1,170.56 6.50 54.84 1,490.00 3,118.65 109.31 2,548.95 71.07

20-Jan-21 Indian Railway Finance Corp 4,633.38 1.59 1.16 26.00 24.85 -4.42 24.85 -4.42

23-Dec-20 Antony Waste Handling Cell Ltd 300.53 16.55 15.04 315.00 407.25 26.29 296.35 -5.92

17-Dec-20 Mrs Bectors Food Specialities Ltd 540.54 29.33 198.02 288.00 501.00 106.79 389.65 35.30

4-Dec-20 Burger King India Ltd 796.50 68.15 156.65 60.00 115.35 130.67 143.45 139.08

Source : Moneycontrol

For more details refer offer documents on sebi www.sebi.gov.in

The securities quoted are exemplary and are not recommendatory. Such representations are not indicative of future results.
Source of statistical information, charts, graphs etc – RHP, DRHP, addendum and Moneycontrol.

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