Kolkata-based jewellery manufacturer and exporter Shree Ganesh Jewellery House Ltd is raising Rs 150 crore ($25.3 million) from Progruss Investments, a foreign investor, through a preferential allotment, as per a stock market disclosure.
The parentage of the investment entity could not be immediately ascertained. The money, which will be raised through an issue of fresh shares, will give the investor around 14.52 per cent stake of the company’s expanded capital base.
The preferential allotment is made at Rs 125 a share, a substantial premium to the current market price. The company’s scrip crashed 4 per cent and was quoting at Rs 75.65 a share on the BSE in mid-day trade in a strong Mumbai market on Friday.
The company did not disclose how it is planning to deploy the money but said the funds raised will be used for long-term financial resources which will enable the company to improve its operating performance.
Once the allotment is complete, the promoters’ shareholding in the company will shrink from 74.79 per cent to 63.93 per cent. Credit Suisse PE, which currently holds a 4.94 per cent stake, will own around 3.8 per cent post the fresh issue of shares.
Founded in 1992, Shree Ganesh Jewellery went public in 2010 when Credit Suisse PE part exited. It clocked revenues of around Rs 13,000 crore with net profit of Rs 468 crore for the year ended March 31, 2013. While export constitutes a large portion of its revenues, it has also forayed into the retail segment with its brand Gaja.
Last year, it also entered the solar power generation business by buying controlling stakes in two companies—Alex Astral Power and Alex Spectrum Radiation. The firm was also eyeing the gold loan business as an extension of its existing operations.
(Edited by Joby Puthuparampil Johnson)
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