To use IPO proceeds for expansion: Shree Ganesh Jewellery

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Shree Ganesh plans to raise Rs 375 cr via IPO

The initial public offering (IPO) of Shree Ganesh Jewellery House will open for subscription on March 19, 2010. The company plans to issue 1.42 crore equity shares. According to sources, the price band could be Rs 260-275. The issue will close on March 23, 2010.

In an interview with CNBC-TV18, Nilesh Parekh, Chairman, Shree Ganesh Jewellery House, spoke about the latest happenings in his company and sector.

Here is a verbatim transcript of the exclusive interview with Nilesh Parekh on CNBC-TV18. Also watch the accompanying video.

Q: What are the purposes for raising this money?

A: You must understand that the place we come from is West Bengal where the manufacturing is a major activity. That means that most of the jewellery manufactured around in India are through the artisans of Bengal. We would like to raise these funds for investing more into the manufacturing. Approximately Rs 145 crore will go into the manufacturing and expansion of our present facilities, at Manikanchan, at Domjur and one more facility area at Mandal Para. These are three manufacturing hubs of West Bengal wherein you have pools of artisans available. All you got to do is you got to train them, you got to give them a decent livelihood and you have to guide them and give them a lot of confidence that what they manufacture is top class and that is why the company has planned to raise this capital for expansion of manufacturing.

Approximately Rs 68 crore would go for domestic expansion in India as India is one of the largest buyers of handcraft jewellery and buyers of jewellery.

Some part of IPO money would go for refining, some part of it would go towards the acquisition and some part will go to the IPO expenses and general corporate funds.