Kalyan Jewellers stock tumbles; company denies inducements

Mumbai: Kalyan Jewellers, a Dalal Street favourite in recent times, extended its losing run on Wednesday, despite the company refuting talk that money managers had been bribed to buy its shares.

Executive director Ramesh Kalyanaraman dismissed this as "very absurd" in the call on Tuesday. The stock dropped 7% on Wednesday to close at ₹554.90, extending its losing streak to the ninth straight day. The 32% drop in the share price in this period has eroded the market cap of Kalyan Jewellers by ₹24,000 crore to ₹57,234 crore at the Wednesday close.

The Kerala-based Kalyan Jewellers did not respond to queries.


During the analyst call on Tuesday, Kalyanaraman also dismissed speculation about the company's plans to buy an aircraft, income tax raids and inventory overvaluation.

He clarified that the company has no plans to purchase a plane and currently has a helicopter on its books. Kalyanaraman refuted talk of income tax raids and inventory overvaluation, reiterating the company's commitment to "operational transparency."

Foreign portfolio investors owned 16.37% of the company while domestic institutional investors held 13.58% as of December 31, 2024. Motilal Oswal Midcap Fund was the biggest investor among mutual funds with a 6.30% stake. Promoters led by Kalyanaraman TS held a 62.85% stake.

Kalyan Jewellers soared almost 940% since its listing in March 2021 to a peak of ₹795 earlier this month.

The selloff since January 3 has happened despite a strong December quarter business update by the company that pointed to continued growth prospects.

As of December 31, the company operated 349 outlets, including 253 Kalyan Jewellers stores and 59 Candere stores. It has 36 Kalyan stores in West Asia and one in the US.