Shares of Kalyan Jewellers India slid closed 4% lower on the bourses on Friday. The negative trend in the share prices of the jewellery retailer seemed to have been triggered after Warburg Pincus-owned Highdell Investment offloaded a 2.3% stake in the company on Tuesday.
Highdell divested 2.3% stake in the company through a block deal on the National Stock Exchange at a price of Rs 110.04 per share on Tuesday to garner Rs 256.67 crore.
On Friday, Kalyan Jewellers closed at Rs 105.80, down by Rs 4.30 or 3.9% on the NSE.
Kalyan Jewellers that went public in March 2021, saw its shares drop over 9% on Tuesday to close at ₹107.90 on the NSE. The decline follows a 42% gain in the company’s shares since its initial listing, but a 15% drop so far in 2023.
As of December 31, 2022, Warburg Pincus held a 26.36% stake in Kalyan Jewellers through Highdell Investments, owning 271.5 million shares. The private equity firm originally intended to sell Rs 500 crore worth of shares in the company’s IPO, but ultimately downsized its share sale. Prior to the IPO, Warburg held a 32% stake in Kalyan Jewellers, having invested Rs 1,200 crore in two tranches – Rs 700 crore in 2014, and an additional ₹500 crore in 2017.
Kalyan Jewellers India Pvt Ltd specializes in the production and sale of gems and jewelry. The company announced in December 2022 its intention to grow its retail presence by more than 30% in 2023 by opening 52 additional showrooms.
