Kerala-headquartered Kalyan Jewellers is expected to launch its initial public offer (IPO) on March 16, reports suggest. The company had filed its draft red herring prospectus (DRHP) with market regulator SEBI last year and had received its approval on October 15.

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The jewellery showroom chain's IPO has been one of the most anticipated since December, when it was expected to hit the market. Analysts had earlier said that as there are very few jewellery makers listed on the market, Kalyan Jewellers could get a strong response given it robust liquidity, favourable valuations and trends of recovery.

It was reported in November that the IPO could consist of a fresh equity issue of Rs 1,000 crore and an offer for sale (OFS) worth Rs 750 crore. However, the Warburg Pincus-backed company is now expected to revise the offer price to around Rs 1,175 crore -- primary issue of around Rs 800 crore and OFS of Rs 375 crore, Moneycotrol reported.

"The pent-up demand in the domestic wedding calendar has led to Kalyan Jewellers doing very well since December in terms of month-on-month sales. Once the COVID-19 uncertainty is set aside, the outlook looks good for the firm. This would have contributed to the OFS component being reduced in anticipation of better returns at a later stage. The listing will facilitate a partial exit for Warburg Pincus and the proceeds will be utilised for working capital, store expansion and debt reduction," sources told the portal.

Company promoter TS Kalyanaraman is expected to offload shares worth up to Rs 250 crore. He owns 27.41 percent in the company, the other promoters are his sons TK Seetharam and TK Ramesh who own 22.17 percent stake each (as of November 2020). In 2014, Warburg Pincus had invested Rs 1,200 in the company and three years later pumped in Rs 500 crore. Overall the New York-based private equity firm holds 24 percent stake in the jewellery brand.

The company has not revealed any information about the price band.