Warburg to invest additional Rs 500 crore in Kalyan Jewellers

MUMBAI: US private equity giant Warburg Pincus will in Rs 500 crore in Kalyan Jewellers, increasing its exposure in the Thrissur-based jewellery retailer and reaffirming its faith in India's gold consumption story.

The deal is expected to be signed this week and a formal announcement is due shortly, multiple people with direct knowledge of the process told ET. The transaction would mark Warburg Pincus' second and final round of investment in Kalyan Jewellers ahead of the jeweller's proposed public issue, expected to hit the markets next year, sources said.

Both Kalyan and Warburg Pincus declined comment.

In 2014, Warburg had invested Rs 1,200 crore to pick 10% stake in Kalyan Jewellers.This was the single largest investment in the jewellery sector in the country.