Kalyan Jewellers India Ltd has invested ₹350 crore in its wholly owned subsidiary Candere Lifestyle Jewellery Pvt Ltd through a rights issue, with the capital infusion earmarked entirely for repayment of a loan extended by the holding company.
Kalyan Jewellers subscribed to 17,50,000 equity shares of Candere with a face value of ₹10 each as part of the rights issue. The allotment of the shares was completed on September 19, 2026, according to the company.
No change in Candere ownership
The transaction will not alter Kalyan Jewellers’ shareholding in Candere, which will continue to remain a 100% wholly owned subsidiary of the jewellery retailer.
The ₹350-crore investment is being made specifically to facilitate repayment of the loan previously extended by Kalyan Jewellers to Candere. Therefore, the transaction represents a restructuring of the funding between the parent company and its subsidiary rather than an increase in Kalyan Jewellers’ economic interest in Candere.
Related-party transaction
Candere is a wholly owned subsidiary and, consequently, a related party of Kalyan Jewellers. The company said the transaction is a related-party transaction conducted at arm’s length.
Kalyan Jewellers said the transaction is exempt under Regulation 23(5) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which provides exemptions for certain related-party transactions involving wholly owned subsidiaries.
Except for Kalyan Jewellers’ shareholding in Candere, the company’s promoters, promoter group and group companies have no interest in Candere, according to the disclosure.
Capital structure remains unchanged
The latest investment does not result in any change in Kalyan Jewellers’ percentage ownership of Candere. The subsidiary will continue to be fully owned by Kalyan Jewellers following the rights issue.
The transaction effectively converts the loan exposure between the parent and subsidiary into equity capital, while keeping the ownership structure unchanged