The Rs 1,175-crore initial public offering of Kalyan Jewellers has witnessed a 2.61 times subscription so far on the final day of bidding, March 18. The issue opened on March 16.
The public offer has received bids for 24.95 crore equity shares against the IPO size of 9.57 crore equity shares, the subscription data available on exchanges showed.
The IPO size was reduced after the company raised Rs 351.89 crore from anchor investors at the higher end of the price band of Rs 86-87 per share on March 15, a day before the issue opening.
The reserved portion of qualified institutional buyers is subscribed 2.76 times and that of non-institutional investors is booked 1.91 times. Retail investors put in bids 2.82 times more than their reserved portion, while employees portion was subscribed 3.74 times.
Kalyan Jewellers is planning to raise Rs 800 crore via fresh issue and Rs 375 crore through offer for sale route. The net fresh issue proceeds are going to be used for working capital requirements.
The company is one of the largest jewellery companies in India based on revenue as of March 2020. Company operates its jewellery business through 107 showrooms located across 21 states and union territories in India, and 30 showrooms in the Middle East as of December 2020.
Also read our in-house research report on Kalyan Jewellers
Looking at the financial performance, Hem Securities recommends that only investors with high-risk appetite should subscribe to the issue for short term, Hem Securities said.
Also read - Kalyan Jewellers IPO: 10 things you should know
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