Kalyan Jewellers plans IPO
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Indian retailer Kalyan Jewellers is planning an IPO to raise capital for expansion internationally.
The company has plans for six stores in Qatar and an undisclosed number in Singapore, Malaysia and Sri Lanka.
Chairman and MD T S Kalyanaraman has not revealed the timeframe for the IPO, but the move comes a year after high-profile private equity investor Warburg Pincus took a cornerstone stake in the business, effectively giving it an international scale credibility.
Kalyan has 85 premium stores across India and in the Middle East and has a further 15 in planning. More significant is its second tier of concessions and ‘service centre’ stores branded ‘My Kalyan’ – a network currently numbering 650, with another 350 planned by March next year.
“We had opened two [Kalyan] stores in Chennai – at Chromepet and Adayar – a couple of days ago,” said Kalyanaraman.
“Going at this pace, we will be touching the 100-store mark towards the end of financial year 2016,” he said.
Kalyanaraman sees huge potential in the ‘affordable diamond’ segment of the market, which it plans to service through the My Kalyan network.
Questions & Answers
Q.What is the primary reason Kalyan Jewellers is planning an IPO?
What is the primary reason Kalyan Jewellers is planning an IPO?
The company aims to raise capital through the IPO to fund its international expansion. This includes opening new stores in countries like Qatar, Singapore, Malaysia, and Sri Lanka.
Q.Which international markets does Kalyan Jewellers specifically plan to expand into?
Which international markets does Kalyan Jewellers specifically plan to expand into?
Kalyan Jewellers has concrete plans for six stores in Qatar. Also, it intends to open an undisclosed number of stores in Singapore, Malaysia, and Sri Lanka as part of its international growth strategy.
Q.What is the significance of Warburg Pincus's investment in Kalyan Jewellers?
What is the significance of Warburg Pincus's investment in Kalyan Jewellers?
Warburg Pincus, a high-profile private equity investor, took a cornerstone stake in the business a year ago. This investment effectively provided Kalyan Jewellers with international scale credibility.
Q.How many 'My Kalyan' service centre stores are currently operating, and what are the future plans for this network?
How many 'My Kalyan' service centre stores are currently operating, and what are the future plans for this network?
The 'My Kalyan' network currently consists of 650 service centre stores. The company plans to add another 350 stores to this network by March of next year, expanding its reach significantly.
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