Kalyan Jewellers India Limited’s stock fell 5.40 per cent to ₹502.25 on NSE by 11.27 AM on Tuesday, following disclosures of significant share pledges by company promoters. The stock remains under F&O ban, preventing new position creation.
According to the company’s regulatory filing dated January 20, 2025, promoters Ramesh Trikkur Kalyanaraman and Seetharam Trikkur Kalyanaraman, who each hold 18.04 per cent stake in the company, have created new pledges on their shareholding.
Ramesh Kalyanaraman pledged shares to five entities: Catalyst Trusteeship Limited (acting for OCM India Opportunities XIT Alternate Investment Fund), Bajaj Finance Limited, Aditya Birla Finance Limited, TATA Capital Limited, and Infina Finance Private Limited. The total pledged shares amount to approximately 7.65 per cent of the company’s share capital.
Similarly, Seetharam Kalyanaraman pledged shares to six entities: Catalyst Trusteeship, Bajaj Finance, Aditya Birla Finance, TATA Capital, STCI Finance Limited, and HSBC Invest Direct Financial Services (India) Limited. His total pledged shares represent roughly 7.998 per cent of the share capital.
According to Kranthi Bathini, Director, Equity Strategy at WealthMills Securities, “Kalyan Jewellers has been one of the standout performers in its segment, with the stock rallying impressively over the last three years-from around ₹100 to a high of ₹795, marking its place as a multi-bagger. This growth has been supported by improved earnings during this period. However, in the past year, the stock has doubled from ₹400 to ₹800, which makes it fully priced at current levels. With the stock now in the F&O segment, there is room for short positions, adding to the volatility.”
He also added, “Additionally, recent developments, including promoter pledges, may weigh on investor sentiment. If the pledged shares face margin pressure and the requirements are not met, it could lead to selling in the open market, which acts as a negative factor for the stock price. Overall, while the fundamentals remain strong, the stock’s near-term outlook is subject to these pressures, and investors should tread cautiously.”
The largest individual shareholder among the promoters, Trikkur Sitarama Iyer Kalyanaraman, holds 22.29 per cent stake with no encumbrances reported. The jewellery retailer is scheduled to announce its December quarter results on January 30.
