Kalyan Jewelers Inc. converts USD 12.03 million loans into equity in its US subsidiary

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 US-based entity’s capital structure. 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 optimise 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, the subsidiary will continue 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.

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 subsidiary’s financial health. By strengthening its balance sheet, Kalyan Jewelers Inc. is better positioned for sustained growth in the US market.