Kalyan Jewellers shares fall after Highdell Investment sells stake for Rs 226 crore

Shares of Kalyan Jewellers were in focus today after US-based private equity (PE) firm Warburg Pincus’ arm offloaded a 2.26% stake or 23.3 million shares in the jewellery retailer. Kalyan Jewellers shares plunged 3.18% to Rs 106.50 against the previous close of Rs 110 on BSE. Market cap of the firm fell to Rs 10,970 crore. Earlier, the stock opened flat at Rs 110.10. Stock of Kalyan Jewellers has risen 81.35 per cent in a year and fallen 15.82 per cent in 2023. The share hit a 52-week high of Rs 134 on December 29, 2022 and a 52-week low of Rs 55.20 on May 11,2022 .

Total 1.06 lakh shares of the firm changed hands amounting to a turnover of Rs 1.13 crore on BSE.

In terms of technicals, the relative strength index (RSI) of Kalyan Jewellers stock stands at 43.9, signaling it's neither trading in the overbought nor in the oversold zone. The stock has a beta of 1.1, indicating high volatility in a year. Kalyan Jewellers shares stand higher than the 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.

According to bulk deal data, Highdell Investment sold its stake at Rs 110.04 apiece, taking the transaction size to Rs 256.67 crore.

Warburg Pincus, through its PE arm Highdell Investments, owned 271.5 million shares or 26.36% stake in the company as on December 31, 2022.

Kalyan Jewellers was listed in March 2021, when Warburg Pincus sold stake worth Rs 250 crore in the company. While the PE firm had initially planned to sell a stake worth Rs 500 crore in the public offering, it later cut down the size of its share sale. Ahead of its IPO, Warburg held a 32% stake in the company.

The PE fund had invested Rs 1,200 crore in the jewellery firm in two tranches – Rs 700 crore in 2014, and a second tranche of Rs 500 crore in 2017.

The stock was listed on March 26, 2021 at Rs 73.95, a 15% discount to the issue price of Rs 87. Since then, the company's shares have gained about 43.34%.

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