BENGALURU Reuters Kalyan Jewellers India Ltds initial public offering was oversubscribed by just 1.28 times on Thursday, a sign of tepid interest among investors unimpressed by the jewellers recent financial results and spooked by a drop in gold demand.

The numbers compare unfavourably to other listings this year, including for paint maker Indigo Paints Ltd, which was 50 times oversubscribed, and engineering firm MTAR Technologies Ltd, oversubscribed more than 100 times.

Kalyan39;s offering of 95.71 million shares worth 8.33 billion rupees at the upper end of the company39;s IPO price range of 8687 rupees per share had drawn bit.ly3qYya7U bids by 1130 GMT on Thursday worth 10.66 billion rupees 146.6 million.

bit.ly3qYya7U

The jeweller, backed by U.S. private equity firm Warburg Pincus, said last week it aimed to raise 11.75 billion rupees through the IPO. It plans to use 6 billion rupees of that to fund working capital requirements.

The Keralaheadquartered company is among the biggest players in the countrys gold and diamond jewellery market, competing with Titan Company Ltd, Tribhovandas Bhimji Zaveri Ltd and others.

If you consider Kalyans last two years financials… the numbers are not as impressive if compared to Titan, said Amarjeet Maurya, associate vice president for mid caps at Angel Broking Ltd in Mumbai. Considering this, the market is not giving as much value.

Kalyan posted revenue from operations of 101.01 billion rupees for the year to March 2020,…