Kalyan Jewellers initial public offering (IPO) was subscribed 2.61 times on the final day of subscription. It includesRs 351 cr anchor bids from marquee investors like Singapores GIC, Sundaram Mutual Funds and HDFC life amongst others.
The company saw good demand for its shares from the qualified institutional buyers (QIBs) as the portion reserved for them was subscribed 2.76 times. Market analysts have said that the HNIs invested in the Kalyan IPO keeping in mind long term gains, as opposed to listing gains.
Portion reserved for retail was a total of Rs 411 crores, and the company garnered subscription of 2.8 times. Thehyper-local nature of the business, strong brand recall and the overall faith consumers have in the yellow metal have given impetus to the retail subscription.
Kalyan Jewellers is known for introducing best practices in the industry like BIS hallmarked jewellery, detailed price tags disaggregating various components, Karatmeters to verify purity and transparency in gold exchange etc. The company has also adopted a transparent process for valuing exchange of customer gold, including verifying the exchanged gold purity in front of the customer to determine its fair value.
Kalyan Jewellers Postives
- Kalyan Jewellers is an established brands & among one of the India’s largest jewellery companies with a Pan-India presence & wide range of product offerings & strong promoters base.
- Kalyan Jewellers, also one of the largest jewellery companies in India based on revenues, had 1.8% share of the overall jewellery market and 5.9% share of the organized jewellery market.
- Company has good opportunity to expand and gain market share as it has a strong product portfolio and uses local artisans as contract manufacturers to aligns with local tastes, which would cater to rising demand.
- Its ‘My Kalyan’ network focuses on marketing and customer engagement in rural and semi-urban ares, which further support growth.