Kalyan Jewellers forms subsidiary in UK but stock falls 

Shares of Kalyan Jewellers Ltd slipped over 4% on Friday reflecting weak sentiment on the counter. The correction came even as Kalyan Jewellers India Limited has incorporated a wholly owned subsidiary in UK -“Kalyan Gold & Diamond Jewellery Limited.”

The jewellery stock ended 4.13% to Rs  458.70 against the previous close of Rs 478.25 on BSE. Market cap of the firm fell to Rs 47,291 crore. Total 15.61 lakh shares of the firm changed hands amounting to a turnover of Rs 72.75 crore.

Kalyan Jewellers shares have gained 26.59 per cent in one year and risen 284.65 per cent in two years.

In terms of technicals, the relative strength index (RSI) of Kalyan Jewellers stock stands at 24, signaling it's trading in the oversold zone. The stock has a beta of 0.8, indicating very low volatility in a year.

Kalyan Jewellers said Kalyan Gold & Diamond Jewellery Limited has a subscribed capital of GBP 1000. The object of incorporation of the subsidiary is to expand the Jewellery business in UK. The business of the Subsidiary is in line with the business of the company, said Kalyan Jewellers.  The cost of acquisition or the price at which the shares are acquired is 1000 Pounds (1000 equity shares of 1 Pound each).

Kalyan Jewellers has 100% stake in its newly formed subsidiary, the firm said.