Kalyan Jewellers share price opened on a tepid note as the stock fell 15 percent to Rs 73.95 compared to the issue price of Rs 87, on the National Stock Exchange, on March 26. The muted subscription to its IPO and bearish trend in equity market dented sentiment.
The stock declined 15.60 percent to list at Rs 73.90 on the BSE.
The public issue of jewellery maker had seen a subscription of 2.61 times, while the benchmark indices had fallen more than 7 percent from their all-time high seen in February amid increasing COVID-19 cases and FII selling.
Kalyan Jewellers raised Rs 1,175 crore through its maiden public offer including fresh issue of Rs 800 crore that will be utilised towards working capital requirements.
It generated a significant portion of revenues from gold jewellery, accounted for 74.77 percent in FY20 followed by studded (diamond and precious stone) and other jewellery segments.
The company intends to continue leveraging their extensive ‘My Kalyan’ network of 766 centres across India to deepen customer engagement and actively bolster their efforts to acquire a larger customer base in the markets in which they operate.