Kalyan Jewellers India Limited has approved the conversion of inter-company loans into equity shares in its wholly owned subsidiary, Kalyan Jewelers Inc, to strengthen the capital structure of the US-based entity. The Executive Committee of the Board of Directors approved the conversion of USD 12,034,607 into 12,034,607 equity shares of USD 1 each at a meeting held on June 26, 2026. This strategic move is intended to improve the subsidiary's profitability, support future growth, and optimize its debt-equity ratio.

The transaction falls under the ambit of related party transactions as Kalyan Jewelers Inc is a wholly owned subsidiary of the company. It was conducted at arm’s length, and the conversion will not alter the percentage of equity shareholding, with the subsidiary continuing to remain 100% owned by Kalyan Jewellers India Limited. The approval was granted in compliance with applicable laws, rules, and regulations, including Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Details of Kalyan Jewelers Inc

Kalyan Jewelers Inc is engaged in the retail sale of jewellery in the United States and was incorporated on October 25, 2017. The subsidiary has reported a significant rise in turnover over the last three fiscal years, reflecting its operational expansion.

The conversion of the pre-existing loan into equity marks a pivotal step in bolstering the financial health of the subsidiary. By enhancing the strength of its balance sheet, the company aims to better position Kalyan Jewelers Inc for sustained operational growth in the US market.

Kalyan Jewellers India Limited has closed its trading window for designated persons effective July 1, 2026, to prevent insider trading ahead of its financial results. The window will remain shut until 48 hours after the declaration of the unaudited financial results for the quarter ended June 30, 2026. This measure restricts equity share transactions by promoters, directors, designated persons, their immediate relatives, and connected persons.

The closure follows the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, and the company's internal code of conduct. The restriction applies to dealings in the company's equity shares on the National Stock Exchange of India Ltd. and BSE Limited.

The company has not yet announced the specific date for the board meeting to consider and approve the unaudited financial results for the quarter ended June 30, 2026. This information will be intimated to the stock exchanges in due course.

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