PE firm Warburg Pincus sells 6.45 pc in Kalyan Jewellers for Rs 3,584 cr

NEW DELHI: Private equity major Warburg Pincus on Thursday sold a 6.45 per cent stake in jewellery retailer Kalyan Jewellers for Rs 3,584 crore via open market transactions. Meanwhile, the Singapore government, Fidelity, Nomura, HSBC Mutual Fund (MF) and Citigroup Global Markets acquired stakes in the company.

US-based Warburg Pincus through its affiliate Highdell Investment Ltd offloaded shares of Kalyan Jewellers through a block deal on the National Stock Exchange (NSE).

As per the data, Highdell Investment Ltd sold a total of 6,64,89,666 or 6.45 per cent stake in Kalyan Jewellers.

The shares were disposed at an average price of Rs 539.10 apiece, taking the combined transaction value to Rs 3,584.45 crore. At the end of the June quarter, Warburg Pincus's arm Highdell Investment owned a 9.17 per cent stake in Thrissur-based Kalyan Jewellers.

It held the stake since 2014. Shares of Kalyan Jewellers were acquired by HSBC MF, Invesco MF, Motilal Oswal MF, Citigroup Global Markets, Fidelity, Nomura Funds Ireland, Singapore Government, Monetary Authority of Singapore, and Nomura India Investment Fund, among others.

In a regulatory filing, Kalyan Jewellers on Thursday said a share purchase agreement has been executed between the company's promoter Trikkur Sitarama Iyer Kalyanaraman and Highdell Investment Ltd on August 21.

After the share purchase agreement, Highdell will sell up to 2,42,99,066 shares or 2.36 per cent stake in the jewellery retailer for a purchase price of Rs 535 per share, aggregating to Rs 1,300 crore.

"Pursuant to LODR regulations, we wish to inform you that basis an intimation dated August 21, 2024, received from Trikkur Sitarama Iyer Kalyanaraman, a share purchase agreement (SPA) has been executed on August 21, 2024, between Highdell Investment (Highdell), and the promoter of Kalyan Jewellers India Ltd," the company said.

"Pursuant to the SPA, Highdell will be selling 24,299,066 equity shares (representing 2.36 per cent of the share capital of the company) to the Promoter for a purchase price of Rs 535 per share aggregating to Rs 1,300 crore."

The transaction is subject to the promoter arranging requisite funds through financing to consummate the transaction. The company is not a party to the SPA, the filing said. After the stake purchase, the promoter and promoter group shareholding in the firm will increase from 60.59 per cent to 62.95 per cent.

"Warburg Pincus has played a crucial role in Kalyan Jewellers' growth and expansion across India and the Middle East. The private equity firm initially held a 30 per cent stake in the company prior to its IPO. Over time, they have reduced their shareholding as part of a strategic exit plan.

"This transaction represents the final step in their planned divestment process. We are grateful for our partnership with Warburg Pincus, which has been a driving force behind many of our achievements over the past decade," said founder and MD of Kalyan Jewellers Kalyanaraman.

Kalyan Jewellers is one of the leading players in the jewellery market. It has operations in India and overseas.

In June last year, Warburg Pincus, divested a 6.2 per cent stake in Kalyan Jewellers India for Rs 725 crore. On Thursday, shares of Kalyan Jewellers India jumped 10.71 per cent to close at Rs 602.75 apiece on the NSE.