Highdell Investment to sell 2.36% stake in Kalyan Jewellers to promoter TS Kalyanaraman; deal valued at ₹1,300 crore

Highdell Investment, a subsidiary of Warburg Pincus, will sell a 2.36 per cent stake worth ₹1,300 crore in Kalyan Jewellers to its promoter, the jewellery maker said in an exchange filing on Wednesday, August 21.

The foreign investor is selling 2.42 crore equity shares in the jewellery maker for a purchase price of ₹535 per share, which values the sell-off deal at ₹1,300 crore, according to the exchange filing. The share purchase agreement (SPA) is 2.45 per cent discounted compared to the stock's current trading price as of Wednesday.

Kalyan Jewellers' shares closed 1.27 per cent higher at ₹548.15 on Wednesday, compared to ₹541.25 at the previous market close. The company reported the stake sale at the end of the trading hours.

Trikkur Sitarama Iyer Kalyanaraman, the jewellery maker's promoter, will purchase the shares from Highdell after completing the transaction, for which the agreement was executed on August 21. The deal will increase the promoter group's stakeholding by 2.36 per cent to 62.95 per cent from 60.59 per cent, as per the filing.

“The transaction is contingent upon fulfilment of certain conditions precedent, including availing of financing by the Promoter from financial institutions/ non-banking financial institutions and drawing down of requisite funds,” said Kalyan Jewellers in the regulatory filing.

Highdell's previous stake sale:

Highdell Investment had earlier offloaded some stake in Kalyan Jewellers through a bulk order on March 29, 2023. According to an exchange filing, the investor sold 2.54 per cent or 2.62 crore equity shares in the jewellery maker at a face value of ₹10 per share.

According to the filing, Highdell Investment had more than 103 crore equity shares with a face value of ₹10 per share in Kalyan Jewellers. 

Kalyan Jewellers recorded a 27 per cent rise in net profits for the April to June quarter of the financial year 2024-25, compared to the previous year. This rise in net profit was driven by strong performance in the Middle East and Indian market segments. The company's India operations revenue rose 29 per cent, and the Middle Eastern operations saw a 16 per cent growth year-on-year.