SEBI seeks response to Kalyan Jewelers’ IPO, company has submitted DRHP for Rs 1750 crore

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SEBI seeks response to Kalyan Jewelers’ IPO, company has submitted DRHP for Rs 1750 crore

Kalyan Jewellers designs, manufactures and sells gold and jewelery products. In the last month itself, it has filed DRHP for the IPO.

  • SEBI seeks answers from merchant bankers involved in IPO
  • Promoters will sell shares worth Rs 250 crore in IPO

Capital market regulator SEBI has sought clarification on the proposed IPO of branded recovery company Kalyan Jewellers. It seeks this clarification from the merchant bankers involved in the IPO. Kalyan Jewellers plans to raise Rs 1,750 crore through this IPO.

SEBI has sought an answer on Friday

According to the information, Sebi on Friday sought a reply from the merchant bankers of the IPO. Although Sebi has asked for an answer, they have not known it. Kalyan Jewellers will raise one thousand crore rupees by issuing new shares under this IPO. While they will raise Rs 750 crore under the Offer for Sale (OFS).

DRHP filed last month

Kalyan Jewellers had filed a Draft Red Hearing Prospectus (DRHP) for the IPO with SEBI last month. However, Sebi has not yet approved the IPO. The funds raised from the IPO will be used by the company for working capital and general corporate purposes. Kalyan Jewellers promoters T. S. Kalyanaraman will sell shares worth Rs 250 crore. While Hydel Investment Ltd will sell shares worth Rs 500 crore. Both will sell shares through OFS.

The company has 107 show rooms in the country.

In the June quarter this year, the company had 107 showrooms in 21 states. There are 30 showrooms in Middle East countries. Kalyan Jewellers designs manufacture and sells gold and jewelry products. Axis Capital, Citigroup, ICICI Securities, and SBI Capital are the book running lead managers. Explain that there has been a significant rise in gold prices this year. Gold is above 51 thousand rupees per ten grams.

It is expected that gold prices may rise further till Diwali in the festive season. In such a situation, if the company’s IPO comes by January, then it can get a good response. Currently, jewelery companies like TBZ and Titan are listed on the stock market.

Foreign investors engaged in buying bonds by selling shares in India this month.

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