Private equity firm Warburg Pincus complete exited from Kalyan Jewellers India, selling its remaining 9.17 percent stake to institutional investors and TS Kalyanaraman - the promoter of the jewellery chain, as per a company statement on August 22.
Kalyanaraman picked up 2.36 percent stake from Warburg Pincus, while the remaining 6.81 percent stake was sold to public market institutional investors.
“This transaction represents the final step in their planned divestment process,” Kalyanaraman said in a statement.
In a regulatory filing on August 21, the company had informed the stock exchanges that a Warburg Pincus entity - Highdell Investment - will be selling 2.36 percent stake in Kalyan Jewellers to Kalyanaraman for Rs 1,300 crore, at Rs 535 each.
Post the transaction the ‘promoter’ and ‘promoter group’ shareholding in the company will increase from 60.59% currently to 62.95%.
Private equity firm Warburg Pincus had been an investor in the company since 2014 and has been gradually paring down its stake since the IPO in 2021.
“Warburg Pincus has played a crucial role in Kalyan Jewellers’ growth and expansion across India and the Middle East. The private equity firm initially held a 30 percent stake in the company prior to its IPO in March 2021. They have reduced their shareholding as part of a strategic exit plan,” Kalyanaraman added.
Shares of Kalyan Jewellers closed trading at Rs 597.45 apiece on the BSE on Thursday, up 8.99 percent from its previous closing price.
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