Mumbai, Nov 5 (UNI) Renaissance Jewellery Ltd has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offer of 5,324,240 equity shares of Rs ten each at a price to be decided through the 100 per cent book building process along with one detachable warrant for every two equity shares.
The issue is likely to enter the capital market this month-end and price band fixing was around Rs 125-175 per share.
Mr Sumit Shah, MD of Renaissance Jewellery Ltd, said the company has decided the funds would be used in expansion and modernisation of existing plants. The Company is in the business of manufacture and sale of studded gold, platinum and silver jewellery and is primarily focussed on international markets including the USA. It has been in the studded jewellery business for over a decade and operates through three manufacturing units of which two units are located at SEEPZ-SEZ at Mumbai and one 100 per cent Export Oriented Unit (EOU) unit at Bhavnagar in Gujarat. Besides, the subsidiarly Renaissance Retail Venture Pvt Ltd has a manufacturing facility at MIDC, Andheri for catering to the domestic retail market.
The Company has recorded a sale turnover higher at Rs 438 crore for last financial year ended March 31, 2007 and net profit was registered higher at Rs 26 crore from the previous financial year 2005-06. It has nine own retail outlets and 17 are franchises at various department stores across the country.