Ad-for-equity media investor Bennett, Coleman & Co Ltd (BCCL) is picking equity convertible warrants worth Rs 13.4 crore ($2.4 million) in public listed diamantaire and jewellery company C. Mahendra Exports Ltd.
According to a company filing to the Bombay Stock Exchange, BCCL will pick 1 warrant convertible into 1,121,008 equity shares at a price of Rs 119 each. This would be at a significant premium to the existing market price of Mumbai-based C. Mahendra Exports.
The company’s scrip declined 3.04 per cent to close at Rs 63.7 a share on the BSE, in a strong Mumbai market on Tuesday.
At the conversion price, BCCL would pick around 1.8 per cent in the firm.
Incorporated in 1974 by Mahendra Shah and Champak Mehta, C.Mahendra Exports set up its first factory for manufacturing cut and polished diamonds in Surat in 1993. In 2006, the firm started its second unit at Varachha Road, also in Surat. Ciemme Jewels Ltd, a subsidiary of the company, designs and manufactures diamond-studded jewellery, which is retailed under the brand name Ciemme.
This is the second deal of the year for BCCL. Recently, the firm invested $0.74 million in New-Delhi based Provestment Services Ltd for an undisclosed stake.
In the jewellery space, BCCL, through its Brand Capital (previously Private Treaties), had invested in firms like Shree Ganesh Jewellery House, Rajesh Exports, Flawless Diamond, Gitanjali Gems and Gitanjali Brands.
(Edited by Prem Udayabhanu)