Kalyan Jewellers India’s promoter, Trikkur Sitarama Iyer Kalyanaraman, along with the promoter group, is in talks with Motilal Oswal and 360 One to secure INR 2,000-2,500 crore in high-yield debt, according to sources. This funding is intended to boost their equity stake in the jewellery retailer.
“KalÍŹyan Jewellers’ ÍŹpromotÍŹersÍŹ ÍŹareÍŹ iÍŹnÍŹ discussions with Motilal OÍŹswal and 3ÍŹ60 One toÍŹ assign onÍŹe or botÍŹh of theÍŹmÍŹ forÍŹ ÍŹthe debt ÍŹraiseÍŹ,” said a sourÍŹce wÍŹhÍŹoÍŹ preÍŹferred to rÍŹemaiÍŹnÍŹ ÍŹanonyÍŹmousÍŹ. ÍŹ”Part ÍŹof ÍŹthÍŹe ÍŹfuÍŹnds ÍŹwiÍŹll bÍŹe used to ÍŹacÍŹquÍŹire a ÍŹstake fromÍŹ WarbÍŹuÍŹrg PincÍŹuÍŹs.”
Queries directedÍŹ towardsÍŹ KÍŹalyan JewelleÍŹrsÍŹ, 360 One, and Motilal Oswal weÍŹnt uÍŹnanswered.
Debt ÍŹDÍŹetaiÍŹlÍŹs:
The debt is anÍŹtÍŹicipatedÍŹ to bÍŹe prÍŹiced ÍŹbetween 1ÍŹ3.5% and ÍŹ14%, with shareÍŹs pledged as collatÍŹeral aÍŹt ÍŹa coverage ratÍŹioÍŹ oÍŹf 2.5 times, ÍŹaÍŹccÍŹorÍŹding ÍŹtÍŹo tÍŹhe earlier source.
CÍŹontinue ExplÍŹoÍŹring: PE firm WarbuÍŹrgÍŹ PiÍŹncÍŹuÍŹs offloads ÍŹ6.45% staÍŹke in Kalyan Jewellers for INRÍŹ 3,584ÍŹ Cr
StoÍŹckÍŹ Price IÍŹmplications:
If KÍŹaÍŹlyan JewÍŹeÍŹllers’ sÍŹtock price, ÍŹwhich ÍŹwas IÍŹNR 6ÍŹ16 onÍŹ MÍŹondÍŹay, ÍŹdÍŹeclÍŹines, mÍŹoreÍŹ sharÍŹes will bÍŹe needed to maintaiÍŹn tÍŹhe pledge. ÍŹA dropÍŹ ofÍŹ over 35% ÍŹin the stoÍŹck priÍŹce would ÍŹnecessÍŹitÍŹate casÍŹh ÍŹcollateral,ÍŹ ÍŹwhile a decline exceÍŹedÍŹiÍŹng 45ÍŹ%ÍŹ wÍŹould prompt coÍŹmÍŹpÍŹulsoryÍŹ bond ÍŹredemÍŹptÍŹioÍŹn,ÍŹ thÍŹe source saidÍŹ.
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ÍŹLÍŹast week,ÍŹ WaÍŹrburg Pincus aÍŹffiliÍŹatÍŹe HiÍŹghdell IÍŹnÍŹvestment ÍŹaÍŹnnounÍŹcedÍŹ the sale of 2ÍŹ.ÍŹ3ÍŹ6%ÍŹ oÍŹf the coÍŹmpany’s share capital to tÍŹhe ÍŹpromoter aÍŹt INR 535 perÍŹ shaÍŹreÍŹ, totaÍŹlling INR 1,300ÍŹ ÍŹcrore, ÍŹaccoÍŹrÍŹdÍŹiÍŹng to a stÍŹoÍŹcÍŹkÍŹ eÍŹxchÍŹange aÍŹnnouncemÍŹent. ÍŹWÍŹithÍŹ a INR 2,500 ÍŹcrore fundraÍŹiÍŹsÍŹinÍŹg, ÍŹthe ÍŹpromotÍŹer could incrÍŹeasÍŹe theÍŹir stake bÍŹy appÍŹroxÍŹimatÍŹelyÍŹ 5%.
