The Hindu : Business : Renaissance Jewellery to tap market

Online edition of India's National Newspaper
Friday, Nov 16, 2007
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Renaissance Jewellery to tap market

Corporate Reporter

CHENNAI: Renaissance Jewellery, a leading exporter of studded gold and platinum jewellery is entering the capital markets with an initial public offer of 53.24 lakh equity shares of Rs. 10 each for cash through book-building process along with one detachable warrant for every two equity shares allotted by the company.

The price band has been fixed between Rs. 125 and Rs. 150 per share. The issue will be open from November 19 to 21.

Investors can apply for one equity share against each warrant at a fixed premium of 25 per cent over the issue price. The warrant exercise period will be the period commencing from the completion of the 16th month and will be open up to the completion of the 18th month from the date of allotment of equity shares and warrants.

The company has two manufacturing units at SEEPZ-SEZ in Mumbai and an export oriented unit at Bhavnagar in Gujarat. Besides it has subsidiaries having units in MIDC, Andheri and in Mumbai.

The issue is to part finance the capacity expansion programmes at its Bhavnagar and Mumbai units and to invest in its foreign subsidiary.

The company was awarded a certificate of merit by Gem and Jewellery Export Promotion Council for being the second largest exporter of studded precious metal jewellery for 2005-06. In 2004 it was also awarded ‘International supplier of the year’ by Wal-Mart.

The company has reported a consolidated turnover of Rs. 438.45 crore in fiscal 2007 and a net profit after tax of Rs. 25.41 crore.

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