Aequitas Research - Kalyan Jewellers (0907491D IN) ... Kalyan Jewellers IPO

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Aequitas Research

Sumeet Singh

EUR 91.06 For Business Accounts Only

Kalyan Jewellers IPO

Kalyan Jewellers aims to raise around US$160m via a mix of selling new and existing shares in its Indian IPO. The company was established in 1993 and is backed by Warburg Pincus.

The company is one of the largest jewellery companies in India based on FY20 (year ending Mar 2020) revenue, as per the Technopak report. As of Dec 2020, it had 107 showrooms across 21 states and union territories in India. It also had 30 showrooms in the Middle East.

Earnings haven’t grown much over the past few years, as the company appears to have suffered from a strategic misstep. Over 9M21, revenue declined by 30.6% and the company suffered a loss.

Having said that, the industry remains highly fragmented with ample scope remaining for organised players, like Kalyan, to gain market share. We have looked at the background of the company in our previous note, Kalyan Jewellers Pre-IPO - Strategy missteps led to earnings flatlining.

In this note, we will run the deal through our ECM framework and talk about updates since our last note.

12/03/2021 1 EN

Underlyings

Kalyan Jewellers

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Titan Company Limited

Titan is engaged in the watch division where Co. manufactures and sells a variety of watches with varying price range within India and overseas; in the jewelry division where Co. works through Tanishq and Zoya. Tanishq has a range of jewelry studded with diamonds or coloured gems in 18 kt gold, 22 kt pure gold and platinum; and Zoya is a chain of luxury jewelry boutiques; in the eyewear division where Titan Eye+ retails products which showcase contemporary designs, coupled with optical exams with Sankara Nethralaya; and in the precision engineering division, Co. sells its components globally and helps build machinery.

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INE280A01028 National Stock Exchange of India India

Provider

Aequitas Research

Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.

Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.

Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.

Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.

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Analysts

Sumeet Singh

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Kalyan Jewellers IPO

Titan Co. Ltd: 1 director

MOSL: TITAN COMPANY: Jewelry demand robust; margin outlook improving

An unfavourable environment weighs on TITAN COMPANY, which sees a downgrade to Slightly Negative

Onewo Space-Tech Pre-IPO

Legend Biotech Follow-on Offering

Xtep International Placement

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