Kalyan Jewellers stock registered strong volume as there were six block deals on the counter. Kalyan Jewellers ended up 14.8 percent higher as Warburg Pincus sold its 6.2 percent stake in the jewelry company for Rs 724 crore. The stock witnessed a volatile session registering a high of Rs 134.9 and low of 119.10. Warburg Pincus still holds stake in the company. Today’s stake was sold in the open market. As per March 2023 records, Warburg Pincus held 23.8 percent stake in Kalyan Jewellers.

The shares sold by Warburg Pincus were lapped up by BNP Paribas, Nomura and Franklin Templeton Mutual Fund.

Kalyan Jewellers has been planning to raise money in order to reduce its debt. The promoters own 60.5 percent stake in the company and the rest is owned by general public and institutional investors. Mutual funds own only 2 percent stake in the company.

During earnings call, Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers informed, “We have also drawn up plans to reduce invested capital in the Middle East and improve its return profile by converting some of the existing owned showrooms to franchised ones and simultaneously expand the showroom network to the franchise model.”

Kalyan Jewellers has touched 52-week high in today’s session. The stock has witnessed a strong upside from its 52-week low of Rs 55. For year ending March 2023, Kalyan Jewellers reported Rs 432 crore in net profit on total sales of Rs 14,071 crore. The performance of the company has been stellar during the last few quarters. The company has maintained an operating profit margin of 7-8 percent during the last three years.

Kalyan Jewellers listed on stock exchanges in March 2021. The company raised funds during IPO at Rs 87 per share. The stock listed at 15 percent discount.