Gold’s record-setting rally is set to give wings to the largest initial share sale by an Indian jeweler, helping it overcome tumbling demand in the second-biggest consuming nation.
Kalyan Jewellers India said Monday it plans to raise as much as 17.5-billion rupees ($235-million) through a public listing as it banks on the long-term appeal of gold, a staple of Indian weddings and a popular investment option in the country.
The plan comes as gold purchases by Indians this year are forecast to plunge to a record low with the coronavirus pandemic hurting the economy and pushing prices to all-time highs. Still, the Warburg Pincus LLC-backed jeweler is likely to benefit from the nearly 30% jump in gold prices this year.