KOCHI: In a strategic move aimed at consolidating ownership, TS Kalyanaraman, the promoter of Kalyan Jewellers India Ltd, has secured a Rs1,300 crore loan from Oaktree Capital to finance the acquisition of shares from private equity giant Warburg Pincus, according to media reports.
The three-year loan, backed by a pledge of 8.51 crore shares or 8.26 per cent of the company’s stake, signals a confident bet on the jeweller’s future growth trajectory.
Oaktree’s involvement underscores institutional confidence in the company, as Kalyanaraman strengthens his stake following Warburg Pincus’ recent exit from the company’s sharejholding.
Warburg offloaded 2.36% stake
Warburg Pincus offloaded a 2.36 per cent stake in Kalyan Jewellers in August for approximately Rs1,300 crore at Rs535 per share. Since then, the stock has surged 32 per cent, currently trading at Rs706.75, reflecting investor optimism about the brand’s strong performance.
The move is part of a broader strategy by Kalyanaraman to consolidate control and position the company for sustained growth amid a bullish outlook for the jewellery sector.
Shares of Kalyan Jewellers have nearly doubled in value since the beginning of 2024, a testament to the company’s market appeal and future prospects.
While representatives from Kalyan Jewellers and Oaktree Capital were unavailable for comment, market experts view this share pledge as a key indicator of growing institutional confidence in the company’s potential.
