NEW DELHI, March 19 -- Historically, jewellery companies, barring a few, have not made money for investors in India," says Arun Kejriwal, founder of Kejriwal Research and Investment Services Pvt. Ltd.
In this regard, it is interesting to see the experience of Warburg Pincus, which has made substantial investments in Kalyan Jewellers India Ltd. In October 2014, it invested '1,200 crore in the company at a per share price of roughly '59.6. It is now selling a part of its stake in the Indian jeweller's initial public offering (IPO), which is priced at '86-87 per share.
The compounded average return works out to just 6.1%. The private equity firm lowered its average acquisition price by investing another '500 crore in mid-2017 at a lower pric...