Kalyan Jewellers Share Slips 7%, Hits 6-Month Low; Falls 38% in 13 Days

Kalyan Jewellers share price dropped to a 6-month low of ₹491.25 on the BSE, declining 7% during Tuesday’s intra-day trade. This erased the gains recorded on Monday, as promoters pledged additional shares amounting to 3.5% of the company’s total equity.

Promoters Pledge Additional Shares

The company disclosed that Ramesh Trikkur Kalyanaraman pledged 17.03 million shares (1.65% stake), and Seetharam Trikkur Kalyanaraman pledged 19.12 million shares (1.85% stake). These shares were pledged to financial institutions such as Catalyst Trusteeship, Bajaj Finance, Aditya Birla Finance, Tata Capital, Infina Finance, STCI Finance, and HSBC Invest Direct Financial Service for loan facilities.

With this, the total promoter shareholding pledged now stands at 24.89% (15.64% of the total equity). As of December 31, 2024, 19.32% of promoter shares (12.14% of total equity) were pledged.

Warburg Pincus Sells Entire Stake

On August 22, 2024, Warburg Pincus, a private equity firm, sold its entire 9.17% holding in Kalyan Jewellers. The promoters acquired 24.3 million shares (2.36% stake) at ₹535 per share, totalling ₹1,300 crore. 

Stock Price Decline and Allegations

Kalyan Jewellers share price fell below its previous low of ₹498.85, recorded on January 17, 2025, wiping out Monday’s 6% gain. Over 13 trading days, the stock has plunged 38%, despite the company denying rumours about corporate governance issues, share pledges, auditor concerns, and collusion with fund managers to influence market prices.

Performance Overview

Kalyan Jewellers hit an all-time high of ₹794.60 on January 1, 2025, more than doubling its market value over the last 2 years. In CY23, the stock surged 180%, and in CY24, it gained 116%. In comparison, the BSE Sensex rose 20% in CY23 and 9% in CY24.

Since its market debut on March 26, 2021, the stock has climbed 465% from its issue price of ₹87, despite a sharp correction from its peak.

Kalyan Jewellers India Ltd

Kalyan Jewellers India Ltd designs, manufactures and sells a wide range of gold, studded, and other jewellery products catering to different price ranges. As of FY20, it was one of India’s largest jewellery retailers by revenue. The company was founded by its Chairman, Managing Director, and Promoter, Mr T.S. Kalyanaraman.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.