The initial public offering (IPO) of Kalyan Jewellers has been subscribed 1.21 times on March 17 (Wednesday), the second day of the bidding process. The issue has received bids for 11.56 crore equity shares against the offered size of 9.57 crore shares, as per data available on exchanges.

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The reserved portion for retail investors was subscribed 1.9 times and that of non-institutional investors was subscribed 89 percent. Qualified institutional buyers have not put in bids for 24 percent bids against the reserved portion of 2.72 crore equity shares for them. The employees' portion has been booked 1.91 times.

The IPO comprises of issuance of fresh equity up to Rs 800 crore and an offer for sale (OFS) worth Rs 375 crore. The last day for subscribing to the issue is March 18 (Thursday).

Investors can bid for a minimum of 172 equity shares and in multiples of 172 equity shares thereafter implying a minimum investment of Rs 14,964 at the higher end of the price band.

Read here:

Kalyan Jewellers IPO opens: Key things to know before subscribing

The OFS comprises selling shares worth up to Rs 125 crore by promoter TS Kalyanaraman, and Rs 250 crore by Highdell Investment, belonging to the Warburg Pincus group.

Kalyanaraman and Warburg hold 24.5 percent and 32 percent stake in the company, respectively.

Also Read: Kalyan Jewellers IPO opens: Should you subscribe?

"In terms of valuations, the pre-issue TTM EV/Sales works out to 1.4 (at the upper end of the issue price band), which is low compared to Titan Company (trading at 7.7x). Going forward, we believe that KJIL would perform better on the back of a strong brand and number of stores in India and internationally," said Amarjeet Maurya - AVP - Mid Caps, Angel Broking.

Kalyan Jewellers is one of the largest jewellery companies in India based on revenue as of March 31, 2020.

Antique Stock Broking has recommended avoiding the Kalyan Jewellers initial public offering (IPO) because it believes the stock will be available at cheaper valuations. The Antique note said the IPO valuation seems on the higher side in the short-term to medium-term.

The Antique report stated: “We note that Kalyan Jewellers has faced headwinds in the past couple of years. In FY19, about 60 percent of the company’s revenues were impacted due to floods in south India, while the revenue for the quarter ending March 2020 was adversely impacted due to the COVID-led lockdowns.”

Read here: Avoid Kalyan Jewellers' IPO, recommends Antique; says stock will be available at cheaper valuations

“Accordingly, the company’s revenues have been flat over the past three years with single-digit profitability. Going forward, we believe the company will perform better on the back of strong brand recall, increasing shift to organised jewellery and expansion in-store network,” stated the Antique note.

(Edited by : Abhishek Jha)

First Published:Mar 17, 2021 2:28 PM IST