After the proprietors committed a further 2.5 crore shares, bringing the total number of pledged shares to 11 crore, Kalyan Jewellers’ shares dropped 3%.
After the company’s promoters increased their commitment to their shareholding, the share price of Kalyan Jewellers fell 3% on Thursday, February 6.
According to an exchange filing, the business’s proprietors made an extra promise on 2.5 crore shares or 2.47% of the company. This raised the total number of shares promised from 8.5 crore to 11 crore, increasing the total stake committed from 8.26% to 10.73%.
To issue Non-Convertible Debentures (NCDs), the company’s promoters, Trikkur Kalyanaraman Seetharam and Trikkur Kalyanaram Ramesh, pledge shares as security. The company’s exchange report said the shares were pledged on Monday, February 3.
The promoters of Kalyan Jewellers, T.S. Kalyanaraman and T.K. Ramesh, who held 22.29% and 18.04% of the company as of the December quarter, pledged shares to several organizations (Catalyst Trusteeship, Bajaj Finance, Aditya Birla Finance, Tata Capital, STCI Finance, HSBC Invest Direct, and Infina Finance) to obtain loan facilities, the company announced earlier in January.
After this announcement, Kalyan Jewellers’ stock fell 2.89% to the day’s low of ₹551.15 on the BSE, ending a two-day winning run.
The opening price of Kalyan Jewellers’ shares was ₹563.50, somewhat less than the closing price of ₹567.60. The stock has reached the day’s high of ₹569.60 in trading thus far.
Kalyan Jewellers Share Price Trend:
The jewelry market has been a wild ride lately, with significant losses last month and a strong recovery.
Shares of Kalyan Jewellers were sold off because of social media reports that fund managers at Motilal Oswal AMC had engaged in stock-related misbehavior. Claims of bribes were dismissed as “absurd” by the corporation, which clarified that there were no IT raids.
In contrast, Kalyan Jewellers’ stock has risen as much as 26% over the previous five trading days (excluding today’s) due to favorable catalysts, including the company’s impressive quarterly results and the Budget 2025 announcement of a duty cut on several precious metals, including gold jewelry.
Kalyan Jewellers’ profit after tax (PAT) increased by 44% year over year (YoY) to ₹219 crore from ₹180 crore during the same period the previous year. Following the adjustment for the loss resulting from the customs duty cut announced in the Union Budget in July 2024, the consolidated PAT increase is shown.
Furthermore, Kalyan Jewellers reported consolidated revenue of ₹7,287 crore for the third quarter of FY25, a 40% increase over the ₹5,223 crore recorded in the prior year.
