Credit Suisse PE Asia will be making a part exit from Shree Ganesh Jewellery House with a return of 73-80% on its two- year-old investment. Media house BCCL, which is another investor, is sitting on similar unrealised gains on a little less than three-year-old investment in the company, a Kolkata-based jewellery house and an exporter of handcrafted gold jewellery.
The company is raising funds to expand manufacturing and retail operations besides diversifying into newer products and geographies. At the price band of Rs 260-270 a piece, the issue will seek to raise Rs 370-384 crore of which Credit Suisse PE will net Rs 55-57 crore. The PE firm will be making a partial exit through an offer for sale.
Credit Suisse had invested Rs 80 crore through convertible debentures in March’08 and after conversion its cost of purchase is estimated at Rs 150 apiece. BCCL, that invests at least partly through ad-for-equity deals, put in Rs 5 crore through convertible debentures in June’07 and post conversion of shares last August has the same cost of purchase.
Credit Suisse holds 10.99% stake as of now that will drop to 5.27% post issue. BCCL holdings will decline from 0.69% to 0.55% post issue.
Axis Bank, ICICI Securities and Avendus Capital are the book running lead managers to the issue.
The company has already received a commitment of nearly Rs 65 crore from anchor investors that includes IFCI, India Max Investment Fund and Bank Muscat India Fund who have subscribed shares at the lower end of the issue price band.
For the year ended March’09, the company almost doubled its revenues to over Rs 2,800 crore with net profit of Rs 133 crore. At the lower end of the price band, the company would command a valuation of Rs 1,575 crore (~$345 million).