Article

Kalyan Jewellers IPO Note

17 Mar 2021 Nikita Bhoota

Kalyan Jewellers IPO Details

Issue Opens: March 16, 2021
Issue Closes: March 18, 2021
Price Band: ₹86 -87 per equity share
Issue Size: ~₹1175cr
Bid lot: 172 Equity shares
Issue Type: Book building

About the Company

Kalyan Jewellers India Limited is one of the largest jewellery companies in India based on revenue as of March 31, 2020. It is a pan-India jewellery company with 107 showrooms located across 21 states and union territories in India, and 30 showrooms located in the Middle East.

The company designs, manufactures, and sells a wide range of gold, studded, and other jewellery products across various price points ranging from jewellery for special occasions, such as weddings, to daily-wear jewellery.

Kalyan Jewellers was one of the first jewellery companies in India to voluntarily have all of its jewellery BIS hallmarked and accompanied by a detailed price tag detailing the price of various components used in the final product. This initiative along with customer education and awareness campaigns around the lack of transparency in the Indian jewellery industry has helped the brand become a trusted name in jewellery in India.

 
Objects of the Offer:
The IPO proceed will be utilized towards following purposes:
  • To meet the working capital requirements and
  • To meet general corporate purposes.

Financials


(Cr., unless specified)

FY18

FY19

FY20

Dec 20

Total Assets

8,551

8,060

8,218

8,122

Total Income

10,580

9,814

10,181

5,549

Profit after Tax

141

(4.8)

14.2

(79.9)

Source: RHP

Strengths:
  • The Indian jewellery industry has largely been unorganised and fragmented, comprising more than 500,000 local goldsmiths and jewellers, as per the Technopak Report. Indian jewellery customers have historically struggled with a lack of transparency embedded in the purchase process for jewellery, finding it difficult to verify gold purity and weight and to deconstruct the various components of jewellery prices, including differentiating between raw material costs and jeweller mark-ups or making charges. The company have endeavoured to establish a strong brand in the Indian jewellery market that our customers associate with trust and transparency. According to the Technopak Report, Kalyan Jewellers is among the pioneers in the Indian jewellery market in (a) educating consumers about the aforementioned industry issues; (b) instituting the highest quality standards for our jewellery, and (c) introducing complete price transparency with our products. Through the following initiatives, coupled with concurrent customer education and awareness campaigns, particularly through “My Kalyan” network, the company have helped strengthen its brand by building customer trust and promoting transparency.
  • Kalyan Jewellers is one of the largest jewellery companies in India based on revenue as of March 31, 2020, according to the Technopak Report. We have a pan-India presence with 107 showrooms located across 21 states and union territories in India and also have 30 showrooms located in the Middle East, as of December 31, 2020. In Fiscal 2020 and in the nine months ended December 31, 2020, 78.19% and 86.21% of our revenue from operations was from India and 21.81% and 13.79% was from the Middle East.
  • The company has a hyperlocal strategy where it localizes its product portfolio, brand communication & strategy, showroom experience, and My Kalyan network, according to each market segment.

Strategies:
  • Leverage scalable business model to expand our showroom network and diversify our channels of distribution.
  • Widen product offerings to further increase our consumer reach.
  • Leverage “My Kalyan” network to deepen customer outreach and strengthen the distribution network in our core markets
  • Invest in CRM, marketing and analytics to more effectively target consumers and drive sales


Watch this video to know more about Kalyan Jewellers IPO

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Kalyan Jewellers IPO Note

17 Mar 2021 Nikita Bhoota

Kalyan Jewellers IPO Details

Issue Opens: March 16, 2021
Issue Closes: March 18, 2021
Price Band: ₹86 -87 per equity share
Issue Size: ~₹1175cr
Bid lot: 172 Equity shares
Issue Type: Book building

About the Company

Kalyan Jewellers India Limited is one of the largest jewellery companies in India based on revenue as of March 31, 2020. It is a pan-India jewellery company with 107 showrooms located across 21 states and union territories in India, and 30 showrooms located in the Middle East.

The company designs, manufactures, and sells a wide range of gold, studded, and other jewellery products across various price points ranging from jewellery for special occasions, such as weddings, to daily-wear jewellery.

Kalyan Jewellers was one of the first jewellery companies in India to voluntarily have all of its jewellery BIS hallmarked and accompanied by a detailed price tag detailing the price of various components used in the final product. This initiative along with customer education and awareness campaigns around the lack of transparency in the Indian jewellery industry has helped the brand become a trusted name in jewellery in India.

 
Objects of the Offer:
The IPO proceed will be utilized towards following purposes:
  • To meet the working capital requirements and
  • To meet general corporate purposes.

Financials


(Cr., unless specified)

FY18

FY19

FY20

Dec 20

Total Assets

8,551

8,060

8,218

8,122

Total Income

10,580

9,814

10,181

5,549

Profit after Tax

141

(4.8)

14.2

(79.9)

Source: RHP

Strengths:
  • The Indian jewellery industry has largely been unorganised and fragmented, comprising more than 500,000 local goldsmiths and jewellers, as per the Technopak Report. Indian jewellery customers have historically struggled with a lack of transparency embedded in the purchase process for jewellery, finding it difficult to verify gold purity and weight and to deconstruct the various components of jewellery prices, including differentiating between raw material costs and jeweller mark-ups or making charges. The company have endeavoured to establish a strong brand in the Indian jewellery market that our customers associate with trust and transparency. According to the Technopak Report, Kalyan Jewellers is among the pioneers in the Indian jewellery market in (a) educating consumers about the aforementioned industry issues; (b) instituting the highest quality standards for our jewellery, and (c) introducing complete price transparency with our products. Through the following initiatives, coupled with concurrent customer education and awareness campaigns, particularly through “My Kalyan” network, the company have helped strengthen its brand by building customer trust and promoting transparency.
  • Kalyan Jewellers is one of the largest jewellery companies in India based on revenue as of March 31, 2020, according to the Technopak Report. We have a pan-India presence with 107 showrooms located across 21 states and union territories in India and also have 30 showrooms located in the Middle East, as of December 31, 2020. In Fiscal 2020 and in the nine months ended December 31, 2020, 78.19% and 86.21% of our revenue from operations was from India and 21.81% and 13.79% was from the Middle East.
  • The company has a hyperlocal strategy where it localizes its product portfolio, brand communication & strategy, showroom experience, and My Kalyan network, according to each market segment.

Strategies:
  • Leverage scalable business model to expand our showroom network and diversify our channels of distribution.
  • Widen product offerings to further increase our consumer reach.
  • Leverage “My Kalyan” network to deepen customer outreach and strengthen the distribution network in our core markets
  • Invest in CRM, marketing and analytics to more effectively target consumers and drive sales


Watch this video to know more about Kalyan Jewellers IPO