Goenka Diamond and Jewels has fixed price band between Rs 135-145 per share for its initial public offering (IPO) of 1 crore equity shares.
The issue will be opened for subscription during March 23-26, 2010.The issue shall constitute 30.93% of the fully diluted post issue paid up capital of the company.
Promoters' holding will be reduced to 69.07% from 100%. Nand Lal Goenka, Navneet Goenka and Nitin Goenka are main promoters of this company, which will dilute their stake to 55.27% from 80.01% via this issue.
The company is in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewellery. Its diamond processing business consists of trading, cutting and polishing of diamonds. Jewellery Business consists of manufacturing and retail of jewellery under CERES and G WILD brands.
The objects of this Issue are to meet the expenses of establishing stores for G WILD Stores; meet the expenses of establishing stores for CERES Stores; meet working capital requirements for jewellery business; meet the expenses of establishing a jewellery manufacturing facility in Mumbai; meet the expenses of establishing a diamond processing facility in Mumbai and further invest in the equity capital of subsidiary. The company will utilise around Rs 123.55 crore for above objects.
The book running lead manager to the issue is SBI Capital Markets Limited and Karvy Computershare Private Limited is the registrar.
