Goenka Diamond and Jewels Limited, an integrated player with presence across the value chain, in the business of cutting and polishing of diamonds and manufacture & retailing of diamond jewellery; a certified ISO 9001:2000 company by ISOQAR Limited, is tapping the capital market on March 23, 2010 (“Bid/Issue Opening Date”), with an Initial Public Offering of 1,00,00,000 equity shares of Rs. 10 each (“Equity Shares”) for cash at a price (including a share premium) to be decided through a 100% book-building process. The Bid/ Issue will close on March 26, 2010 .
The Price Band has been fixed between Rs.135 and Rs. 145 per Equity Share. The Floor Price is 13.5 times of the face value and the cap price is 14.5 times the face value of the shares of the Company. The Issue will constitute 30.93% of the fully diluted post issue paid-up capital of the Company.
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.
The Book Running Lead Manager to the Issue is SBI Capital Markets Limited.The Issue is being made through the 100% Book Building Process, wherein up to 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIB) Bidders, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only.
The remainder shall be available for allocation on a proportionate basis to all QIB Bidders including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received from them at or above the Issue Price.
The Promoters of the Company are Nand Lal Goenka, Navneet Goenka and Nitin Goenka, with Mr. Nand Lal Goenka having over 40 years of experience in the gems and jewellery business. The Company has an integrated business model that includes sourcing of rough diamonds from various sources including its Russian subsidiary – M.B. Diamonds LLC, polishing rough diamonds for export market and internal consumption, manufacturing and sale of branded diamond jewellery through its retail chain, resulting in strong presence across the value chain. Going forward, the Company plans to strengthen this model by expanding its Russian sourcing operations and increasing its retail network.
The Company retails diamond jewellery under two brands viz. CERES and G WILD catering to specific segments. The Company retails high end diamond jewellery under the CERES brand targeting the top-end segment of the society while G WILD focuses on internationally designed diamond jewellery targeting the youth. The Company’s product profile includes rings, earrings, pendants, bracelets, necklaces, etc., which are manufactured using polished diamonds, precious and other semi precious stones set in gold. The Company currently has presence in retail sector through five G Wild stores, three of them being Company operated, one store under franchisee and one shop-in-shop, and one Company operated CERES store.