Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Kalyan Jewellers IPO: In a Recovery Following a Strategy Mishap

Pre-IPO | Kalyan Jewelers: Nothing Differentiated and Nowhere Near to Market Leader Tanishq

Kalyan Jewellers IPO: Hedges The Equity Exposure of Those Who Fear an Impending Stock Market Crash

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Kalyan Jewellers / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/kalyan-jewellers" target="_blank" data-smartkarma-citation="entities:29714:1" rel="noopener">Kalyan Jewellers (KALYAN IN)</a> is one of the largest jewellery companies with about 107 showrooms across India and about 30 more in the Middle East. The company recently received Securities and Exchange Board of India’s (SEBI) approval for its INR 17.5 billion IPO, consisting of a fresh issue of up to INR 10.0 billion. The promoters T S Kalyanaraman and Highdell Investment Ltd intend to sell up to INR 2.5 billion and INR 5.0 billion worth of shares, respectively. The offer also includes a reservation of equity shares aggregating up to INR 20 million for eligible employees, and the company could consider a rights issue of up to INR 5 billion prior to the IPO.</p>
<p>Even though the company mentions that 75% of IPO proceeds will be used to fund working capital requirements, in reality, most of the IPO proceeds will be spent on business expansion. The company's business model is working capital intensive and held INR 36.4 billion inventories (54% of total assets) as of March 2020. About 75% of the inventory requirement was funded through bank borrowings. Kalyan Jewellers forecasts a 25% increase in inventory by FY2022, funded through the IPO proceeds.</p>

Kalyan Jewellers (KALYAN IN) is one of the largest jewellery companies with about 107 showrooms across India and about 30 more in the Middle East. The company recently received Securities and Exchange Board of India’s (SEBI) approval for its INR 17.5 billion IPO, consisting of a fresh issue of up to INR 10.0 billion. The promoters T S Kalyanaraman and Highdell Investment Ltd intend to sell up to INR 2.5 billion and INR 5.0 billion worth of shares, respectively. The offer also includes a reservation of equity shares aggregating up to INR 20 million for eligible employees, and the company could consider a rights issue of up to INR 5 billion prior to the IPO.
Even though the company mentions that 75% of IPO proceeds will be used to fund working capital requirements, in reality, most of the IPO proceeds will be spent on business expansion. The company's business model is working capital intensive and held INR 36.4 billion inventories (54% of total assets) as of March 2020. About 75% of the inventory requirement was funded through bank borrowings. Kalyan Jewellers forecasts a 25% increase in inventory by FY2022, funded through the IPO proceeds.

Kalyan Jewellers IPO: Not a Gold Rush But Could Be a Time-Tested Investment Like Gold It Self