C Mahendra Exports, the flagship company of C Mahendra Group, has filed its DRHP on 2/7/2008 to enter the capital market with an IPO of 1.30 crore equity shares of Rs10 each at a price to be decided through the 100% book building process at a later stage.
The issue will constitute 30.23% of the fully diluted post issue paid-up capital of the company.
The company proposes to list its shares on BSE and NSE and the BRLMs to the issue are Yes Bank, AnandRathi Financial Services.
The objects of the issue are to finance the setting up a diamond processing unit at Surat; a jewellery manufacturing facility in Mumbai; retail outlets and brand development; for investment in a subsidiary company - Mahendra BVBA and for general corporate purposes.
Out of the proceeds from the issue, the company proposes to deploy Rs 44.07 crores for setting up a diamond processing and jewellery manufacturing units at Surat and Mumbai respectively. Rs 120 crores for setting up retail outlets and brand development and Rs 100 crores for investing into C Mahendra BVBA, which is engaged in procuring rough diamond from Alrosa, Harry Winston and other Canadian and African producers.
C Mahendra Exports is engaged in sourcing of rough diamonds, trading in rough and polished diamonds and processing of diamonds, besides manufacturing and marketing of diamond jewellery.
The group established marketing entities in Hong Kong and USA to cater to some of the major markets for cut & polished diamonds and diamond jewellery across the globe. Currently, the Group has around 8 marketing offices spread across Surat, Mumbai, Delhi, Kolkata, Hong Kong, New York, Los Angeles and Antwerp to market cut and polished diamonds and diamond jewellery.
The Group also does some procurement of polished diamonds through these offices.
Currently, the company has two facilities for cutting and polishing of diamonds in Surat. Further, Ciemme Jewels Limited and C.Mahendra Infojewels own jewellery manufacturing facilities in Mumbai.
For the year ended March 30,2007, the company posted an income of Rs 1,716 crores and profit after tax of Rs 61.34 crores as compared to an income of Rs 1,151.61 crores and profit after tax of Rs 13.63 crores for the year ended March 30, 2006. And for nine months ended 31st December, 2007, the company recorded an income of Rs 1,396.80 crores and profit after tax of Rs 23.59 crores.