The US-based company held 9.17% in Kalyan Jewellers as on June 30, 2024 through its affiliate Highdell Investment. It held the stake since 2014.
Commenting on the development, Kalyanaraman who is also the Managing Director of the company said, “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% 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”.
On Wednesday, the company informed exchanges about Kalyanaraman’s plan to buy 2.36% equity share worth Rs 1,300 crore from Highdell Investment. The company said that it received an intimation from the MD regarding a share purchase agreement that has been executed between Highdell Investment and the promoter of the company.
The 2.36% shares comprise over 2.43 crore equity shares and the purchase price is Rs 535 per share.The transaction will be subject to promoter arranging requisite funds through financing to consummate the transaction, a Wednesday release said, adding that the company is not a party to the SPA.Post the transaction, the promoter and promoter group shareholding in the company will increase from 60.59% to 62.95%.The company has two other promoters in Seetharam T K and T K Ramesh. There are a dozen other names as promoter groups of the company.
Shares of Kalyan Jewellers today jumped 11% to end the session at Rs 602.75 on the NSE, up by Rs 58.30 or 10.71%.
The multibagger stock has given returns of 153% over the last one year outperforming Nifty which has yielded 28% in the same period.
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