Kalyan Jeweller Promoter To Acquire Stake Worth Rs 1,300 Crore From Warburg Pincus Entity

Trikkur Sitaraman Iyer Kalyanaraman, the promoter of Kalyan Jewellers India Ltd., has signed a share purchase agreement with Highdell Investment, owned by US private equity major Warburg Pincus, to acquire shares worth Rs 1,300 crore.

Hindell will offload 2.43 crore shares, representing a 2.36% stake in the company, for a purchase price of Rs 535 apiece, according to an exchange filing by Kalyan Jeweller. The purchase price is at a discount of 1.83% from Wednesday's closing price of Rs 544.45 per share.

However, the transaction is subject to the fulfilment of certain conditions, including the availability of financing by the promoter. The promoter will raise the funds from financial institutions or non-banking financial institutions and draw down the requisite funds.

On completion of the acquisition of shares, the promoter and promoter groups shareholding in the company will increase to 62.95% from the earlier 60.59%.

As of June 2024, Trikkur Sitaraman Iyer Kalyanaraman holds a 60.57% stake in the company, while Hindell holds a 9.17% stake, according to data from the BSE.

In February, Hindell offloaded a 6.66% stake in the jewellery-making company for Rs 2,317 crore. Prior to offloading the shares, Hindell held a 17.59% stake in the jewellery company.

Kalyan Jewellers' stock closed 0.47% higher at Rs 544.45 per share, as compared with a 0.29% advance in the benchmark Nifty 50 on Wednesday. It has risen 147.65% in the last 12 months and 50.28% year-to-date.