Global investors eye 12% Kalyan stake for $250 million

Kalyan Jewellers is attracting global investor attention and many private equity investors are approaching the company, indicating its growing repute.

"Many have approached us for an 8-12% stake for a valuation of $200-250 million. However, the management has not decided on private placements so far," executive director Ramesh Kalayanaraman told dna. He refused to disclose the names of companies which have evinced interest in a stake buyout.

The news of stake sale comes as Kalyan plans a foray into Malaysia and Singapore next year, ahead of a potential listing in 2-3 years.

Kalayanaraman said the company plans to open 10 showrooms in the next fortnight. Of these, two will be Mumbai, three in Delhi and one each in Bangalore, Chennai, Pune, Ahmedabad and Jallandhar.

Currently, the group has 52 showrooms, generating revenues of over Rs 10,000 crore. If the additional showrooms are added, FY14 revenues will touch around Rs 14,000 crore.

He said plans were afoot to add another 19 by the end of fiscal 2015, of which nine would be in the Gulf countries, he told dna.

The group's eight showrooms in UAE have together clocked record sales of one ton of gold worth Rs 240 million dirhams (1diraham=Rs16.65) by February this year.

With the addition of another nine stores, the company hopes to target 6-8 tonnes sales by FY 2015 in the Gulf region alone.

The company has annual revenues of Rs 9,400 crore and hopes to touch Rs 15,000 crore next year.