The jewellery leader closed its bidding process of the Initial Public Offering of the company on March 18. The issue was subscribed 2.64 times in its three-day bidding process, data on exchanges showed.
The Rs 1,175 crore IPO was subscribed 2.82 times in the retail category, 2.76 times among the QIBs (Qualified Institutional Buyers), and 1.91 times in the NII (Non-institutional Buyer's) category.
The issue offered 47,738,372 shares to retail investors, 27,279,068 shares to qualified institutional buyers and 20,459,303 shares to non-institutional investors.
The offer was priced at a range of Rs 86-87 with a minimum quantity of 172 shares with a face value of Rs 10 each. In the offer, Rs 800 crore were raised via fresh issue of shares and Rs 375 crore via offer-for-sale route.
The company is likely to get listed on March 26 and shares will be credited in demat accounts of investors on March 25. The company will debut on both BSE and NSE.
However, the IPO didn't catch much flame in the grey market as compared to the other issues in the recent period. The stock was trading at a range of Rs 93-95 with a premium of 8 per cent.
Brokerage firm Prabhudas Lilladher also recommended the investors to avoid the issue in their IPO note as the firm tracked previous listings in the sector and also the company's weak balance sheet.
In the document filing, the firm has proposed that the net proceeds of the offer will be utilised to finance business working capitals and meet general corporate purposes of the company.
Kalyan Jewellers is one of India's largest Jewellery companies and the key business activities of the company include designing, manufacturing, and selling a variety of gold, studded and other jewellery products for various occasions i.e. wedding, festivals, etc. Further, the company currently has 107 showrooms over 21 states and union territories in the country.