Goenka Diamond Issue Open Date 23-Mar-10   Issue Closing Date 26-Mar-10   Application Money 100   Allotment Money   Price Band 135 - 145   Minimium Application No. 40   Issue Size (Shares) 10000000   Market Lot 1   Objective The objects of this Issue are to (a) meet the expenses of establishing stores for our G WILD brand (G WILD Stores); (b) meet the expenses of establishing stores for our CERES brand (CERES Stores); (c) meet working capital requirements for jewellery business; (d) meet the expenses of establishing a jewellery manufacturing facility in Mumbai; (e) meet the expenses of establishing a diamond processing facility in Mumbai; and (f) further invest in the equity capital of our Subsidiary. Category No. of Shares No. of Shares Subscription Ratio   Offered / Reserved Bid For   Non-Institutional Investors   1500000   4493200   3.00   Qualified Institutional Buyers   5000000   3901960   0.78   Retail Individual Investors   3500000   2320160   0.66   Business Description We are in the business of cutting and polishing of diamonds and manufacturing and retailing of diamondjewellery. We were initially in the business of export of coloured stones and have since then expanded intodiamond trade in 1994 and manufacturing of diamond studded jewellery in 2003. Our manufacturing activitywas boosted in 2006 by having establishing our own diamond processing unit at SEZ in Surat for processingof rough diamonds. In 2007, we also set up a facility for processing of rough diamonds in Mumbai to cater tothe local market and for our jewellery making operations. We scaled up our diamond jewellery makingoperations by establishing a dedicated manufacturing facility in Mumbai and launched our first jewelleryretail store in July 2008.Our Company is promoted by Mr. Nand Lal Goenka who has over 40 years of experience in the gems andjewellery business and his two sons, Mr. Navneet Goenka and Mr. Nitin Goenka.Consistent supply of rough diamonds of desired quality, at a competitive price is one of the critical successfactors of our business. We source rough diamonds from a variety of suppliers in Hong Kong, USA, Russiaand the local Indian market. We have acquired 95% stake in M. B. Diamonds, a LLC registered in Russia inMarch 2008 to enable us to import high quality and competitively priced rough and semi-processed diamondsfrom Russia. We supply the polished diamonds primarily to wholesalers, jewellery manufacturers, traders andretailers based out of Hong Kong, South East Asia, USA, India and other countries.We retail our diamond jewellery under two brands viz. CERES and G WILD catering to specific segments.We retail high end diamond jewellery under the CERES brand targeting the top-end segment of the societywhile G WILD focuses on internationally designed diamond jewellery targeting the youth. Our productprofile includes rings, earrings, pendants, bracelets, necklaces, etc. which are manufactured using polisheddiamonds, precious and other semi precious stones which are set in gold. Our in-house team along with someselect freelance designers undertake the designing of jewellery for our brands. We currently have presence inretail through 3 company operated G WILD stores, 1 store under franchisee and 1 shop-in-shop for G WILD.We opened the first CERES store in Mumbai in April 2009. We also sell CERES branded jewellery throughour corporate office to exclusive clients and business associates.We run an integrated business model that includes sourcing of rough diamonds from various sourcesincluding our Russian Subsidiary, polishing roughs for export market and internal consumption, jewellerymanufacturing and sale of jewellery through our retail chain branded jewellery retail resulting in strongpresence across the value chain. Going forward, we plan to strengthen our model by expanding our Russiansourcing operations and increasing our retail network.As of August 31, 2009 we have 139 full time employees. We have been certified as an ISO 9001:2000company by ISOQAR Limited.Based on our restated unconsolidated financial statements, in Fiscal 2009, 2008, 2007, we generated totalincome of Rs. 45,128.95 lakhs, Rs. 20,061.92 lakhs and Rs. 7,360.54 lakhs respectively, and net profit of Rs.2,452.83 lakhs, Rs. 1,139.05 lakhs and Rs. 229.73 lakhs respectively. Over the last three years, our totalincome and net profit increased at a CAGR of 147.61% and 226.75% respectively.Currently, our business is divided into diamond processing business and jewellery business. Our diamondprocessing business consists of trading, cutting and polishing of diamonds. Jewellery Business consists ofmanufacturing and retail of jewellery under CERES and G WILD brands. Out of Operating Income of Rs.44,377.47 lakhs in the Fiscal 2009, diamond processing business accounted for 77.26 % of total income andjewellery business accounted for 22.74% of total income. Back Address 401 Panchratana Moti Singhbhomiyon Ka Rasta Johari Bazar Jaipur , Rajasthan , 302003 Phone : +91-141-2574175 Email : investors@goenkadiamonds.com Website : www.gdjl.co.in Registrar Karvy Computershare Pvt Ltd 105-108 Arunachal Building 19 Barakhamba Road New Delhi Listed at BSE, NSE Lead Manager SBI Capital Markets Ltd Promoters Nand Lal Goenka Navneet Goenka Nitin Goenka Promoter's Holding Total Share Capital 22329000 Offered to Public 10000000 Promoter's Holding (Pre-Issue) 100 Promoter's Holding (Post-Issue) 69.07