Kalyan Jewellers Stock Surges 8% As Promoter Buys 2.36% Stake
Post the transaction the promoter and promoter group shareholding in the company increases from 60.59 per cent to 62.95 per cent
The stock price of Kalyan Jewellers surged as much as 8 per cent in the Thursday trading session after the multiple block deals totalling Rs 3,585 crore traded on the markets.
Highdell Investment sold a portion of its shares to promoter Trikkur Sitarama Iyer Kalyanaraman.
Kalyan Jewellers stock traded with 7.29 per cent gain at Rs 584 in the afternoon session on the National Stock Exchange (NSE).
As per the deal, Highdell sold promoter Trikkur Sitarama Iyer 2.42 crore equity shares, or a 2.36 percent ownership, for Rs 1,300 crore, or a purchase price of Rs 535 per share.
“This is to inform you that we have entered into a share purchase agreement (SPA) dated with Highdell Investment, pursuant to which we will be purchasing 24,299,066 equity shares in the company from Highdell, representing 2.36 per cent of the share capital of the company, for a purchase price of Rs 535 per share,” stated Kalyan Jewellers in an exchange filing.
Post the transaction the 'promoter' and 'promoter group' shareholding in the company will increase from 60.59 per cent to 62.95 per cent, mentioned in exchange filing.
Further, as of June's conclusion, Highdell Investment's investment will decrease from its prior 9.17 per cent ownership.
Additionally, foreign institutional investors (FII) drastically decreased their ownership of Kalyan Jewellers in the last several quarters. As of the end of Q1 FY25, FII ownership dropped from a peak of 29.65 per cent at the end of FY22 to just 21.19 per cent.
On the other hand, as of 30 June 2024, domestic institutional investors held 11.75 per cent of the jewellery company, a substantial rise from their 2.63 per cent share at the end of FY 22.
The company declared that its net profit for the June quarter increased by 24 per cent year-o-year (YoY) to Rs 177 crore. Compared to the same period last year, when income was Rs 4,375.7 crore, it increased 26.5 per cent to Rs 5,535.5 crore.
Kalyan Jewellers stock rallied nearly 65 per cent in the year 2024 so far compared to benchmark index return of 14 per cent year-to-date (YTD).
