Several block deals involving a total of Rs 3,585 crore worth of stake in Kalyan Jewellers took place on the exchanges on August 22 with Highdell Investment likely selling its part stake to promoter Trikkur Sitarama Iyer Kalyanaraman.
Following the block deal, shares of Kalyan Jewellers surged over 8 percent to high of Rs 589 on the NSE.
Around 6.6 crore shares, making up a 6.4 percent stake in the jewellery company changed hands at a floor price of Rs 539 apiece. While Moneycontrol could not immediately ascertain the parties involved in the transaction, Kalyan Jewellers stated that a share purchase agreement has been executed between Highdell Investment and the promoter of the company.
Under the agreement, Highdell was going to sell 2.42 crore equity shares or a 2.36 percent stake to the promoter Trikkur Sitarama Iyer for a purchase price of Rs 535 per share, making up Rs 1,300 crore.
Post the transaction, Kalyan Jewellers' ‘promoter’ and ‘promoter group’ shareholding will go up to 62.95 percent from 60.59 percent at the end of the June quarter. As for Highdell Investment, it's shareholding will come down from the previously owned 9.17 percent stake as of June end.
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Moreover, foreign institutional investors have sharply reduced their stake in Kalyan Jewellers in the recent quarters, with FII ownership dropping to 21.19 percent by the end of Q1 FY25, down from a peak of 29.65 percent at the close of FY22.
In contrast, domestic institutional investors have significantly increased their holdings in the jewellery company, raising their stake to 11.75 percent as of June 30, 2024, up from just 2.63 percent at the end of FY22.
Meanwhile, the stock has also delivered stellar gains, soaring nearly 140 percent over the past three months.
The company also reported a 24 percent year-on-year growth in its net profit for the June quarter to Rs 177 crore. Its revenue grew 26.5 percent to Rs 5,535.5 crore, compared to Rs 4,375.7 crore in the same period last year.
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