India’s Kalyan Jewellers plans IPO in 2 years

BloombergThursday, May 18, 2017

MUMBAI • Kalyan Jewellers India Ltd, the company giving away Volkswagen AG’s Audi cars as freebies to lure customers, is exploring an initial public offering (IPO) within the next two years as the company seeks to raise funds to expand its global footprint.

“You will hear of an IPO soon — we won’t have to wait too long,” TS Kalyanaraman, chairman of the Kerala-based company, said in a phone interview. A possible share sale could happen between 2018 and 2019, he said.

Kalyan last month won additional investment from private equity firm Warburg Pincus LLC as the jeweller looks to double its stores to 200 over the next three years.

Warburg invested five billion rupees (RM337.31 million), adding to the 12 billion rupees it invested in 2014, to help the jeweller enter new markets Saudi Arabia, Bahrain, Oman, Singapore and Malaysia. “We wanted an investor like Warburg, who has a very good reputation in the community, to come and join hands with us to add more professionalism and to get more expertise,” Kalyanaraman said.

Kalyan plans to spend eight billion rupees in the current financial year started April 1 to open 22 more stores this year in India and the Middle East, taking the total number of outlets to 127, he said. The new stores, in addition to estimated growth of as much as 8% at existing branches, may boost the company’s revenues by 15% this fiscal from 98.3 billion rupees last year, Kalyanaraman said. — Bloomberg

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