Renowned Indian jewelry brand Kalyan Jewellers is once again in the spotlight. The reason behind this buzz is the recent announcement from the company itself, revealing that its shareholder, Heidel Investment, is set to sell its stake worth ₹1,300 crores. This stake will be acquired by the promoter company, T.S. Kalyanaraman.
Understanding the Situation
Heidel Investment plans to sell 2.42 crore equity shares at a price of ₹535 per share, amounting to a total value of ₹1,300 crores. This information was disclosed by Kalyan Jewellers through an exchange filing. According to this filing, the agreement for share sale reflects a price that is 2.45% lower than the current trading price of the stock.
Increase in Stakeholding
Post this transaction, promoter T.S. Kalyanaraman will acquire these shares from Heidel, increasing his group’s overall stake in the company. This deal, which took place on August 21, will elevate the promoter group’s ownership from 60.59% to 62.95%. The filing confirmed these changes to the stakeholding structure of Kalyan Jewellers.
Strong Performance of Kalyan Jewellers
Kalyan Jewellers has been showing remarkable performance in the market. For the quarter from April to June, the company reported a 27% increase in net profit. This impressive growth can be attributed to robust performances in both the Middle Eastern and Indian markets. In the Indian sector, the operational revenue surged by 29%, while a 16% increase was noticed in the Gulf countries.
About Kalyan Jewellers
Founded in 1993 by T.S. Kalyanaraman, Kalyan Jewellers is one of India’s leading jewelry showroom chains. The company went public on March 16, 2021, with its Initial Public Offering (IPO) and was listed on stock exchanges by March 26, 2021. Kalyan Jewellers has established itself as a reputable name in the jewelry industry with a commitment to quality and customer satisfaction.
Summary of Key Details
| Aspect | Details |
|---|---|
| Stakeholder Selling | Heidel Investment |
| Value of Stake | ₹1,300 crores |
| Shares Sold | 2.42 crore equity shares |
| Price Per Share | ₹535 |
| Increase in Promoter Stake | From 60.59% to 62.95% |
| Q1 Net Profit Increase | 27% |
| Revenue Growth in Indian Market | 29% |
| Revenue Growth in Gulf Countries | 16% |
