Warburg Pincus, a prominent private equity firm, has announced the complete divestment of its 9.17% stake in Kalyan Jewellers India.
The exit strategy unfolded in two parts. The majority of shares were sold through block deals in the open market.
According to a report in Business Standard on Monday, Warburg Pincus offloaded 6.45% of its holdings, selling 66.5 million shares at Rs 539.1 each. This transaction, conducted via block deals, generated Rs 3,584 crore.
Per the release, key buyers included Motilal Oswal Mutual Fund, Nomura, and the Government of Singapore.
The remaining 2.36% stake is set to be acquired by T S Kalyanaraman, the managing director and promoter of Kalyan Jewellers.
This agreement, valued at Rs 1,300 crore with a per-share price of Rs 535, is expected to conclude within a month.
Following this transaction, the promoter group’s ownership in Kalyan Jewellers will increase from 60.59% to 62.95%.
The report added that the stake sale news positively impacted Kalyan Jewellers’ stock, which rose 9% to close at Rs 597.5 on the BSE.
Kalyanaraman acknowledged Warburg Pincus’s significant role in Kalyan Jewellers’ growth and expansion across India and the Middle East.
He noted that the private equity firm initially held a 30% stake before the company’s IPO and gradually reduced its shareholding as part of a planned exit strategy.
Warburg Pincus held its stake through its affiliate, Highdell Investment. Kalyan Jewellers went public in March 2021, with shares priced at Rs 87 during the IPO.
The report stated that this divestment marks the end of Warburg Pincus’s investment in Kalyan Jewellers, highlighting the evolving landscape of private equity investments in India’s retail sector.
