Mumbai: Jewellery maker and exporter Shree Ganesh Jewellery House Ltd has set a price band of Rs260-270 per share for its 14.2-million-share initial public offering.
The offer, which comprises a fresh issue of 12.1 million shares and sale of 2.1 million shares by private equity investor Credit Suisse PE Asia Investments (Mauritius) Ltd, will raise Rs386 crore at the upper end of the price band.
Credit Suisse holds a 10.99% stake with 5.2 million shares in the company.
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.
The issue opens 19 March and closes on 23 March.
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 Rs145 crore for the upcoming fiscal year.
“We will use the proceeds for setting up two new manufacturing units in West Bengal and a gold refining plant.. we also plan to add 46 retail outlets by FY12 from the current 13,” managing director Umesh Parekh said.
The firm’s manufacturing capacity is now about 30 tonnes, and the two plants would add a further 6.5 tonnes, he said.
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.
The west Asia, Singapore and Hong Kong are the major export markets for the firm.
The company, which gets 95% of revenues from exports, posted a total income of Rs1,330 crore on net profit of Rs799.5 million for six months ended Sept 2009.
“We are looking at a 25% growth in revenue in the next fiscal and margin growth of 8-10%,” Parekh added.
Axis Bank Limited, ICICI Securities Ltd and Avendus Capital Pvt Ltd are the book-running lead managers for the IPO.