Kalyan Jewellers Establishes UK Subsidiary, but Shares Decline
24th Jan 2025
Kalyan Jewellers' UK Subsidiary Formation
Kalyan Jewellers India Limited has incorporated a wholly-owned subsidiary in the UK, named "Kalyan Gold & Diamond Jewellery Limited." The subsidiary has a subscribed capital of GBP 1000, and its objective is to expand the jewelry business in the UK.
Stock Performance and Valuation
Shares of Kalyan Jewellers Ltd slipped over 4% on Friday, reflecting weak sentiment on the counter. The stock ended at Rs 458.70, down from the previous close of Rs 478.25 on BSE. The company's market capitalization fell to Rs 47,291 crore. A total of 15.61 lakh shares of the firm changed hands, amounting to a turnover of Rs 72.75 crore. Despite the drop, Kalyan Jewellers' shares have gained 26.59% in the last one year and 284.65% in the past two years.
Expansion Plans and Rationale
Kalyan Jewellers said the business of the new subsidiary is in line with the company's core operations. The cost of acquisition for the 1000 equity shares of the UK subsidiary is 1000 Pounds, and Kalyan Jewellers holds a 100% stake in the newly formed entity. The move is part of the company's strategy to expand its jewelry business in the UK market.
Kalyan Jewellers India Limited has incorporated a wholly-owned subsidiary in the UK, named "Kalyan Gold & Diamond Jewellery Limited." The subsidiary has a subscribed capital of GBP 1000, and its objective is to expand the jewelry business in the UK.
Stock Performance and Valuation
Shares of Kalyan Jewellers Ltd slipped over 4% on Friday, reflecting weak sentiment on the counter. The stock ended at Rs 458.70, down from the previous close of Rs 478.25 on BSE. The company's market capitalization fell to Rs 47,291 crore. A total of 15.61 lakh shares of the firm changed hands, amounting to a turnover of Rs 72.75 crore. Despite the drop, Kalyan Jewellers' shares have gained 26.59% in the last one year and 284.65% in the past two years.
Expansion Plans and Rationale
Kalyan Jewellers said the business of the new subsidiary is in line with the company's core operations. The cost of acquisition for the 1000 equity shares of the UK subsidiary is 1000 Pounds, and Kalyan Jewellers holds a 100% stake in the newly formed entity. The move is part of the company's strategy to expand its jewelry business in the UK market.