IPO Analysis: Kalyan Jewellers India Ltd

IPO Analysis: Kalyan Jewellers India Ltd.

Kalyan Jewellers India Limited is one of the largest jewelry 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 jewelry industry.

They have expanded to become a pan-India jewelry 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 June 30, 2020. All showrooms are operated and managed by them. In Fiscal 2020, their revenue from operations was ₹10,100.92 crore, of which 78.19% was from India and 21.81% was from the Middle East. Their total showrooms have increased from 77 as of March 31, 2015 to 137 showrooms as of June 30, 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 jewelry through their online platform.

Company Strength:

• Established brand built on the core values of trust and transparency;
• One of India’s largest jewellery companies with a pan India presence;
• Hyper local strategy enabling them to cater to a wide range of geographies and customer segments;
• Extensive grassroots “My Kalyan” network with strong distribution capabilities enabling deep customer outreach;
• Visionary Promoters with strong leadership and a demonstrated track record supported by a highly experienced and accomplished senior management team and board of directors;
• Wide range of product offerings targeted at a diverse set of customers; and
• Robust and effective internal control processes to support a growing organisation and showroom network with a pan India presence.

Objectives of the Issue:

The IPO proceed will be utilized towards the following business purposes;

•  To finance business working capital requirements.
•  To meet general corporate purposes.

Brief of the Financials (in Rs. Cr):

Important Dates to Remember:

Verdict:

Valuation are quite costly, one can apply only for listing gains otherwise this IPO can be avoided. For long term investment one can wait and enter after listing only. 

Sources: Various publications

Disclaimer: The information provided herein is based on publicly available information and other sources believed to be reliable, but involve uncertainties that could cause actual events to differ materially from those expressed or implied in such statements. The document is given for general and information purpose and is neither an investment advice nor an offer to sell nor a solicitation. While due care has been exercised while preparing this document, we do not warrant the completeness or accuracy of the information. We will not accept any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice.

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