Tue Jan 21 10:13:46 UTC 2025: ## Kalyan Jewellers Stock Plunges on Promoter Share Pledges

**MUMBAI, January 21, 2025** – Shares of Kalyan Jewellers India Limited experienced a sharp decline of 5.40 percent on Tuesday morning, falling to ₹502.25 on the National Stock Exchange (NSE). This downturn follows the disclosure of significant share pledges by the company’s promoters, Ramesh and Seetharam Trikkur Kalyanaraman, each holding an 18.04 percent stake.

According to a regulatory filing, both promoters pledged substantial portions of their holdings to various financial institutions, including Bajaj Finance, Aditya Birla Finance, Tata Capital, and others. Ramesh Kalyanaraman pledged approximately 7.65 percent of the company’s share capital, while Seetharam Kalyanaraman pledged roughly 7.998 percent. The stock currently remains under the Futures and Options (F&O) ban, restricting new position creation.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, attributed the drop to the stock’s recent surge and the impact of the promoter pledges. While acknowledging Kalyan Jewellers’ strong performance and improved earnings over the past three years, Bathini noted the stock’s substantial rise from ₹400 to ₹800 in the last year, suggesting it is currently overvalued. The F&O ban, he added, allows for short selling, exacerbating volatility. The potential for margin calls on the pledged shares further contributes to the negative market sentiment and could trigger further selling pressure.

Despite the strong fundamentals of the company, Bathini advises investors to exercise caution in the near term given the current pressures. The largest promoter shareholder, Trikkur Sitarama Iyer Kalyanaraman, holding a 22.29 percent stake, has not reported any pledges. Kalyan Jewellers is scheduled to release its December quarter results on January 30th.

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