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Kerala-based Kalyan Jewellers is raising ₹1,200 crore from US-based private equity major Warburg Pincus by offloading about 10 per cent stake in the company. The deal, when completed, would value the unlisted company at about ₹12,000 crore.
The fund-raising is expected to be completed within a month. This could be one of the largest deals in the gold and diamond jewellery retail segment on the basis of valuation, sources close to the development told BusinessLine .
The retailer of gold and diamond jewellery is planning to use the proceeds to fund its expansion plans, including setting up 19 showrooms — nine overseas and 10 in India — with a ₹1,000-crore investment.
According to sources, Kalyan Jewellers was in discussions with a number of PE firms before zeroing in on Warburg Pincus. However, this could not be independently verified.
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers when contacted, declined to comment. A spokesperson for Warburg Pincus too, did not comment. Kalyan Jewellers, which closed FY14 with a turnover of ₹9,400 crore, expects a 60 per cent increase in turnover in the current financial year.
The firm expects to close FY15 with a turnover of ₹15,000 crore, Kalyanaraman had told BusinessLine in February this year.
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