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Issue Open Date
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19-Mar-10
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Issue Closing Date
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23-Mar-10
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Application Money
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100
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Allotment Money
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Price Band
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260
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270
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Minimium Application No.
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25
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Issue Size (Shares)
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11769856
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Market Lot
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1
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Objective
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The objects of the Issue are to finance our expansion plans and achieve the benefits of listing on the Stock Exchanges.We believe that listing will enhance our corporate image and brand name.We intend to deploy the net proceeds of the Fresh Issue, after deductions of expenses in relation to the Issue to part finance the fund requirements as under:1. Setting up a manufacturing unit at Mondalpara, West Bengal for the manufacture of plain and studded gold jewellery with an annual installed capacity of 450 kgs of gold, two units for the manufacture of machine made Italian jewellery with an annual installed capacity of 1,500 kgs of gold and a facility for the manufacture of bangles with an annual installed capacity of 600 kgs of gold (“Mondalpara Project”).2. Setting up a new manufacturing unit at Domjur, West Bengal with an annual installed capacity of 2,000 kgs of diamond studded jewellery alongwith an electroforming plant with an annual installed capacity of 2,250 kgs of gold and a gold refinery plant with an annual installed capacity of 1,000 kgs of gold (“Domjur Project”).3. Expansion of manufacturing facility at Manikanchan SEZ by setting up of a facility for the manufacture of diamond studded jewellery with an annual installed capacity of 1,000 kgs of gold and 75,000 carats ofdiamond, a facility for the manufactures of bangles with an annual installed capacity of 600 kgs of gold, an electroforming plant with an annual installed capacity of 1,100 kgs of gold jewellery and an unit for the manufacture of machine made Italian jewellery with an annual installed capacity of 3,000 kgs of gold (“New Manikanchan Project”).4. Setting up retail outlets for sale of jewellery manufactured by our Company and meeting marketing costs5. To meet the working capital requirement6. To meet general corporate purposes7. To meet the issue expenses
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Category
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No. of Shares
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No. of Shares
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Subscription Ratio
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Offered / Reserved |
Bid For |
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Non-Institutional Investors
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1426983
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8742225
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6.13
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Qualified Institutional Buyers
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6061924
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8376825
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1.38
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Retail Individual Investors
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4280949
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5950550
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1.39
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Business Description
We are one of the largest manufacturers and exporters of handcrafted gold jewellery in India. Our products includehandcrafted and hallmarked gold jewellery, gold enameled jewellery and gold jewellery studded with precious stonessuch as diamonds, rubies, emeralds, sapphires, pearls, etc. and semi-precious stones such as garnet, cubic zirconium, etc.Our portfolio includes rings, earrings, pendants, bracelets, necklaces, bangles and medallions. Our products havepresence across different price points to cater to all customers across high-end, mid-market and value market segmentswhich are designed by a team of creative designers which allows us to manage a large and diverse portfolio of designs.Our products are primarily exported to countries such as the U.A.E, Singapore and Hong Kong and we have recorded aconsistent and steady growth in our exports. Our Company’s export income has grown at a CAGR of 72.71% from FY2007 to FY 2009 and our Company’s share in the India’s gold jewellery exports has increased from 1.83% to 6.10%during the same period. During the FY 2007, 2008 and 2009 we have exported 86.73%, 94.13% and 99.22% of ourproducts respectively.Our Company’s export performance has been recognized by the Gems and Jewellery Export Promotion Council(“GJEPC”) in 2007 – 2008 and again in 2008 – 2009 and our Company was awarded the “Outstanding ExportPerformance and Contribution in the Trade for Plain Precious Metal Jewellery Exports by Unit from EoU/EPZ” for boththe years. Our Company received the “Four Star Export House” certificate from the Joint Director of Foreign Trade,Government of India in June 2009 and have been bestowed the status of a “Nominated Agency” under the ForeignTrade Policy, which allows our Company to import precious metals directly. Our Promoters, Mr. Nilesh Parekh and Mr.Umesh Parekh, were the recipient of the “SinGem Young Achiever Award, Eastern India” in 2006, conferred bySinGems, one of India’s premium institutes of jewellery designing.We believe that our Company’s standalone restated financial performance from FY 2007 to FY 2009, viz; total incomeCAGR 63.75%, EBIDTA CAGR 79.39% and net profit stated CAGR 65.20%, demonstrates the consistency in ourCompany’s business growth and leadership capabilities. Additionally, our consolidated restated total income hasincreased from Rs. 1,47,304.38 lacs in FY 2008 to Rs. 2,94,254.86 lacs in FY 2009 which is an increase of 99.76% andour consolidated restated profit after tax has increased from Rs. 9,086.56 lacs in FY 2008 to Rs. 13,346.7 lacs in FY2009 which is an increase of 46.88%.We were also assigned “SE1A” rating by CRISIL for SMEs in November 2008 which indicates “Highest performancecapacity and highest financial strength”.We have three manufacturing units, located in Manikanchan SEZ at West Bengal, which is presently the only jewellerySEZ in West Bengal, spread across an area of 10,500 sq. ft. For further details, please see “Licenses and Approvals” onpage 283 of this Draft Red Herring Prospectus. During FY 2009, we have achieved a production of 12,843.63 kgs ofgold jewellery. West Bengal is known for the availability of craftsmen (“karigars”) skilled in the manufacture ofhandcrafted jewellery. We intend to set up an additional jewellery manufacturing unit at Manikanchan SEZ tosupplement the existing facilities. We also plan to expand our portfolio by commissioning a new vertical in machinemade Italian and light weight jewellery at Mondalpara and at Domjur, West Bengal. For further details of the Projects,please refer to the section titled “Objects of the Issue” on page 48 of this Draft Red Herring Prospectus. As of July 31,2009, our Company has ten retail outlets and we intend to open forty nine retail outlets across India including outletsunder the shop-in-shop and franchisee models.
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Back
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Address |
413
Vardaan Market
25 A
Camac Street
Kolkata
,
West Bengal
,
700016
Phone :
+91-33-22800345
Email :
investors@sgjhl.com
Website :
www.sgjhl.com
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Registrar |
Link Intime India Pvt Ltd
C-13 Pannalal Silk Compound
L B S Marg
Bhandup
Mumbai
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Listed at |
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BSE, NSE
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Lead Manager |
Avendus Capital Pvt Ltd.
Axis Bank Ltd
ICICI Securities Ltd
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Promoters |
Nilesh Parekh
Umesh Parekh.
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Promoter's Holding
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Total Share Capital
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48545988
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Offered to Public
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14269831
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Promoter's Holding (Pre-Issue)
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100
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Promoter's Holding (Post-Issue)
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70.66
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