The leading jewellery group would be issuing fresh equity aggregating up to Rs 1,000 crore and an Offer for Sale (OFS) worth Rs 750 crore, according to the Draft Red Herring Prospectus (DRHP).
The proceeds from the fresh issue of shares would be utilised for working capital requirements and general corporate purpose.
Kalyan Jewellers' promoter T S Kalyanaraman would be offloading shares worth up to Rs 250 crore while Highdell Investment Ltd would sell up to Rs 500 crore-worth shares through the OFS route.
At the end of June this year, the company had 107 showrooms across 21 states and Union Territories in India, and 30 showrooms in the Middle East. Kalyan Jewellers designs, manufactures and sells a wide range of gold, studded and other jewellery products.
"... in the long term, we expect the impact of the COVID-19 pandemic to further accelerate the shift of the jewellery market from unorganised players to organised chains such as us, given the conviction consumers are likely to have in the store experience and safety protocols businesses like ours can offer.
"We also expect the negative impact of the pandemic to be disproportionately higher for some of our competitors, particularly the smaller jewellers and those operating in the unorganised market," the DRHP said.
Global Co-ordinators and Book Running Lead Managers to the offer are Axis Capital, Citigroup Global Markets India, ICICI Securities and SBI Capital Markets. The Book Running Lead Manager is BOB Capital Markets.