Renaissance Jewellery hopes to mop up Rs80 crore from IPO

Renaissance Jewellery hopes to mop up Rs80 crore from IPO
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First Published: Mon, Nov 19 2007. 03 55 PM IST
Updated: Mon, Nov 19 2007. 03 55 PM IST
PTI
New Delhi: Exporter of studded gold and platinum jewellery Renaissance Jewellery said on 19 November, it is tapping the capital market to raise about Rs80 crore to fund its expansion plans and other business purposes.
The initial public offering (IPO) of the company, which opened for subscription today, comprises 53,24,240 equity shares of Rs 10 each.
The company has set a price band of Rs125-150 per share for its IPO. The issue price would be decided through a 100% book-building process.
Based on the lower end of the price band, the company would raise around Rs67 crore while on the upper end, it hopes to mop up around Rs80 crore.
“The company has earmarked 35 crore for its US subsidiary Renaissance Jewellery New York Inc, 15 crore will be spent in capacity expansion in its Bhavnagar and Mumbai facilities and rest will be invested in long-term capital expansion,” Renaissance Jewellery managing director Sumit Shah told reporters here.
The issue would constitute 29% of the fully diluted post-issue paid-up equity share capital of the company.
At presently, the company has 26 outlets in India and is planning to take the number to 250 in the next three years. This expansion will be done through internal accruals, Shah added.
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First Published: Mon, Nov 19 2007. 03 55 PM IST