The Kerala jewellery company, Kalyan Jewellers IPO has opened today on 16th March 2021. The price band of the company issue is Rs 86-87 per share. The company is set to raise Rs 1175 crore from the issue. This IPO will close on 18th March 2021. The company has already raised Rs 352 crore from anchor investors on 15th March 2021.
The company's issue will include a fresh issue of Rs 800 crore and shares worth Rs 375 crore to be sold in the Offer for Sale (OFS).
What is the opinion of experts:
Most experts are recommending investment in the issue, considering the company's brand value, distribution network, product diversification and hope for better growth ahead.
However, some experts believe that it is better to stay away from Kalyan Jewelers, given the high pricing of the issue, competition in the jewelry business and fluctuations in gold prices.
Geojit Financial Services said, “The price is higher according to the upper price band of Rs 87 but Kalyan Jewelers is at 25 P / E in the long term. The company's balance sheet is expected to improve further profitability and its presence across the country. We would recommend investing in it in the long term.”
The company was started in 1993 by TS Kalyanraman. It is one of the largest jewellery companies in the country. The company holds 5.9 percent of the country's organized jewelry market by the fiscal year 2020.