BBN Bureau
Bonds to be listed on Singapore bourse; Kalyan Q4 revenue down 7 pc y-o-y
KOCHI/April 04-2022: Kalyan Jewellers FZO, a 100 per cent subsidiary of Kalyan Jewellers Ltd, is raising up to $200 million (Rs1500 crore) through issue of bonds (notes) in order to refinance old debt.
A statement from Kalyan Jewellers said the subsidiary will issue senior US dollar-denominated fixed-rate notes (bonds) to raise this fund.
The notes will be issued to eligible persons, entities, bodies corporate, companies, banks, financial institutions and any other categories of eligible investors permitted to invest in the notes under applicable laws.
The notes will be guaranteed by Kalyan Jewellers by way of a corporate guarantee. A company statement said the net proceeds of the notes will be utilised primarily to refinance existing borrowings, as well as payment of transaction fees and general corporate purpose in accordance with applicable laws.
The notes which are proposed to be listed on the Singapore Stock Exchange, will not be offered or sold in India under the applicable laws.
Rating agency Standard and Poor’s (S&P) has assigned a preliminary ‘B’ long-term issuer credit rating to the proposed senior secured notes issued by Kalyan Jewellers FZE.
Kalyan Jewellers Q4 revenue down 7 pc
Kalyan Jewellers said it business in India saw a seven per cent decline in revenues during the fourth quarter when compared with the same quarter in the prior year, though when compared with the same quarter two years ago (Q4 FY20), the recently concluded quarter saw over 47 per cent growth.
On a consolidated basis (including the Middle East), Kalyan’s business has seen 6 per cent decline in revenues when compared with the same quarter in the prior year and over 33 per cent growth when compared with the same quarter two years ago (Q4 FY20).
However, its online jewellery platform, Candere, recorded a revenue growth of over 80 per cent during the quarter, as compared with the same period during the last year.
“We are witnessing encouraging trends in the advance collections for both Akshaya Tritiya as well as for wedding purchases during the quarter,” a statement from Kalyan Jewellers said.
As of 31st March 2022, Kalyan Jeweller’s total number of showrooms across India and the Middle East stood at 154.
