22
Aug

Statement from TS Kalyanaraman on Increasing Stake in Kalyan Jewellers as Warburg Pincus Completes Exit

STATEMENT FROM TS KALYANARAMAN ON INCREASING STAKE IN KALYAN JEWELLERS AS WARBURG PINCUS COMPLETES EXIT

22nd August 2024

Mr. TS Kalyanaraman, Promoter & Managing Director of Kalyan Jewellers, acknowledged Warburg Pincus’s contribution to the company’s growth as the private equity firm exits by selling its remaining stake. Mr. Kalyanaraman will acquire 2.36% of the shares for ₹1,300 crore, raising the promoter group’s shareholding to 62.95%. The deal is expected to close within four weeks

Statement from TS Kalyanaraman on increasing stake in Kalyan Jewellers as Warburg Pincus Completes Exit

Role of Warburg Pincus in Kalyan Jewellers’ Growth:

“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. We are grateful for our partnership with Warburg Pincus, which has been a driving force behind many of our achievements over the past decade.”

Final Stake Sale by Warburg Pincus:

Mr. T.S. Kalyanaraman, Promoter & Managing Director of Kalyan Jewellers. Warburg Pincus, a private equity partner of Kalyan Jewellers India Ltd. since 2014, has sold a 6.81% stake in the company earlier today.

Acquisition by T.S. Kalyanaraman:

The remaining 2.36% of Warburg Pincus’ holding will be acquired by T.S. Kalyanaraman, the promoter of Kalyan Jewellers, for ₹1,300 crore. A Share Purchase Agreement was executed yesterday between the promoter and Warburg Pincus’ affiliate, Highdell Investment Ltd., at a price of ₹535 per share.

Impact on Promoter Shareholding:

This transaction will increase the promoter and promoter group’s shareholding in Kalyan Jewellers from 60.59% to 62.95%.

Expected Closing and Execution of the Deal:

The acquisition is expected to close within the next four weeks, following the completion of financing arrangements. The transaction will be executed as an off-market deal in accordance with the purchase agreement.