Shree Ganesh Jewellery House Limited (Shree Ganesh), one of India's largest manufacturers and exporters of handcrafted gold jewellery, has planned to hit the Indian capital markets with its proposed public issue of 1,42,69,831 equity shares of the face value of Rs 10 each. The Bid/ Offer opens on March 19, 2010 and closes on March 23, 2010. The company has fixed the price band at Rs. 260 to Rs. 270 per equity share for the initial public offering. The IPO will consist of a fresh issue of 1,21,36,497 equity shares by the company itself and an offer for sale 21,33,334 equity shares by its PE investor, Credit Suisse PE Asia Investments (Mauritius) Ltd. The issue will constitute 23.52% of the fully diluted post issue paid-up capital and the fresh issue will constitute 20% of the fully diluted post issue paid-up capital of the company. At the higher end of the IPO Price Band, the Company will raise Rs. 328 Crores from the fresh sales of equity shares where as the offer for sale portion for selling shareholder will be Rs. 58 Crores.
Having set up its first unit at Manikanchan SEZ in 2004 with a capacity of 500 kgs of gold jewellery per year, Shree Ganesh added three additional units at Manikanchan SEZ and during FY 2009 and for the six months ended September 30, 2009, thereby achieving a production of 12,843.63 kgs and 5,678.99 kgs of gold jewellery respectively.
Shree Ganesh has been awarded the “Outstanding Export Performance and Contribution in the Trade for Plain Precious Metal Jewellery Exports by Unit from EoU/EPZ” for FY 2008 and FY 2009 by the Gems and Jewellery Export Promotion Council.
For the six months ended September 30, 2009, the Company’s Total Income, and Net Profit was Rs. 1,32,5.8 crores, and Rs. 79.95. crores respectively. Net Sales and PAT of the Company for FY 2009 was Rs. 2,138 Crores and Rs. 110 Crores respectively. Net worth as of Sept 30, 2009 was Rs. 480 Crores. Based on its consistent performance and strong fundamentals, SGJHL has been assigned “NSIC - CRISIL SE1A” rating by CRISIL for SMEs in December 2009 which indicates “Highest performance capacity and highest financial strength”.
Credit Suisse PE Asia Investments (Mauritius) Ltd. had invested Rs. 80 Crores for 10.9% equity stake in the Company in March 2008.
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The company’s strength lies in understanding the requirement of the customer and its execution capabilities. It has managed to get repeat orders from its existing customers on the basis of a strong in-house jewellery designing team (including award winning designers) along almost 560 gold karigars (craftsmen) from West Bengal in India famous for their superior craftsmanship in Gold Jewellery. Shree Ganesh forayed into retail 2 years back under the Brand Name ‘GAJA’ diversifying in to company stores, shop-in-shop and franchisee stores.
The Company plans to use the proceeds of the issue towards setting up two new manufacturing units in West Bengal, expansion of its existing facility at Manikanchan SEZ, meet working capital requirements, setting up retails outlets for the sale of its jewellery and also general corporate purposes.
Axis Bank Limited, ICICI Securities Limited and Avendus Capital Private Limited are the Book Running Lead Managers for this IPO.
About Shree Ganesh Jewellery House Ltd.:
Shree Ganesh Jewellery House Limited is one of the largest manufacturers and exporters of handcraft gold jewellery in India. The products of the jewellery house ranges from handcrafted and hallmarked gold jewellery, gold enameled jewellery and gold jewellery studded with precious stones such as diamonds, rubies, emeralds, sapphires, pearls etc. and semi-precious stones such as garnet, cubic zirconium etc. Its portfolio also includes rings, earrings, pendants, bracelets, necklaces, bangles and medallions.
The Company strongly believes in the qualified and experienced organizational skills of its core management team. Its promoters - Mr. Nilesh Parekh - Chairman, Mr. Umesh Parekh - Managing Director has significant industry experience spanning almost two decades. Both have been instrumental for the company’s consistent performance and growth. The strategic objective of the jewellery house is to further consolidate its position as one of the leading manufacturers of gold jewellery by diversifying its exports to new countries.
