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Shree Ganesh Jewellery IPO opens for subscription
The initial public offering (IPO) of Kolkata-based Shree Ganesh Jewellery House, an exporter of handcrafted gold jewellery, has opened for subscription today.
The initial public offering (IPO) of Kolkata-based Shree Ganesh Jewellery House, an exporter of handcrafted gold jewellery, has opened for subscription today.
The company planned to raise around Rs 371-385.3 crore via 142,69,831 equity shares issue at price band of Rs 260-270 a share.
The issue comprises a fresh issue of 12.1 million shares and sale of 2.1 million shares by Credit Suisse, which is a part of 11% stake bought for USD 20 million in March 2008.
The firm plans to raise funds to expand manufacturing and retail operations and diversify into newer products and geographies and has planned a capital expenditure of Rs 1.45 billion for the upcoming fiscal year.
Umesh Parekh, Managing Director, Shree Ganesh Jewellery, said the company would invest Rs 150 crore to expand capacity at its jewellery manufacturing units at Mandal Pada and Domjur, besides setting up a modern manufacturing unit at Manikanchan SEZ, in Kolkata.
The company intends to set up a two-tonne capacity gold refinery unit with an investment of Rs 5 crore. The unit will recycle gold jewellery. The refinery would enhance profits by 3% to 4%, said Parekh.
Shree Ganesh also plans to set up units in Dubai and Singapore and expand its export footprint into new geographies such as Europe, Australia and Africa, Parekh said.
Axis Bank Limited, ICICI Securities Ltd and Avendus Capital Pvt Ltd are the book-running lead managers for the IPO.
