India's Kalyan Jewellers tumbles in market debut

PC Jeweller

26/03/2021 05:16

** Jewelry store operator's  KALN.NS  shares slide as much
as 16.2% to 72.90 rupees at their market debut vs issue price of
87 rupees
    ** The Kerala-headquartered company's initial public
offering (IPO) to raise 11.75 billion rupees ($162.11 million)
was subscribed https://www1.nseindia.com/products/dynaContent/equities/ipos/ipo_pastissues_details.jsp?type=3&symbol=kalyan&Series=EQ
 just 2.6 times last week  urn:newsml:reuters.com:*:nL4N2LF313
    ** Kalyan's debut comes at a time when fundraising via IPOs
is at a 13-year high in India, thanks to a flood of foreign
money and as unusual interest from mom-and-pop investors spur
more listings, making India one of the hottest IPO markets in
2021. urn:newsml:reuters.com:*:nL4N2LL0NJ
    ** Four companies have made their debut in Mumbai market
this week alone, including two specialty chemical makers and one
engineering service provider  urn:newsml:reuters.com:*:nL4N2LN1GR
     ** However, the COVID-19 pandemic has posed a serious
threat to retailers in the country and is a major risk factor
for Kalyan jewellers, which has 137 retail stores across India
    ** Backed by U.S. private equity firm Warburg Pincus, Kalyan
had set a price range of 86 rupees to 87 rupees per share for
the IPO
    ** Kalyan Jewellers will compete with listed peers such as
Tata Group's Titan Company  TITN.NS  and New Delhi-based PC
Jeweller  PCJE.NS  
    ** On Friday, shares of Titan and PC Jeweller were up 1.3%
each, amid a 1.14% rise in the broader market


($1 = 72.4820 Indian rupees)

 (Reporting by Chandini Monnappa in Bengaluru)
 ((Chandini.M@thomsonreuters.com; +918061822697;))