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.
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.
