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Issue Details
Issue Size (in Crs) 165
Issue Opens on 31/12/2010
Issue Closes on 06/01/2011
Price Band Rs 95-110
Book Leading Managers Yes Bank, Anand Rathi
Registrar to the Issue Link Intime India Pvt Ltd
Summary of Industry
The Two Major Segments of the Gems and Jewellery in India are gold
jewellery and diamond jewellery. While a Predominant portion of gold
jewellery manufactured in india is for domestic consumption, a predominant
portion of rough, uncut diamonds processed in india in the form of either
polished diamonds or finished diamond jewellery is exported. At present,
India is the world’s leading diamond cutting and polishing centre, producing
around 95% of the world’s cut and polished diamond pieces. By carat
weight, India is estimated to process 80% of world rough production by
volume, and 58% by value. The domestic demand for gold jewellery is
estimated at ` 750 billion in 2008, accounting for an estimated 80% of the
Indian jewellery marke of ` 920 billion. The Balance comprises diamond
jewellery ` 130 billion, and other fabricated jewellery ` 30-40 billion.
With an estimated consumption of 713 tonnes during calendar year
or CY 2008 (including jewellery consumption of 502 tonnes), India
is the largest consumer of gold in the world.
The Size of the global gems and jewellery industry is estimated at `
7.14 lakh crores at retail prices in 2005. The Industry has growth at
an average compounded Annual Growth Rate of 5.2% Since 2000.
The Global Jewellery sales are expected to grow at 4.6% year-on year to touch ` 9.04 lakh crores in 2010 and ` 11.24 lakh crores in
2015. India and China together are expected to emerge as a
market equivalent to U.S. market by 2015.
Summary of Business
C Mahendra Exports Ltd. was formed in 1978 in the form of a partnership
firm to carry on the business of manufacturing and trading of diamonds,
precious stones and jewellery. Its first manufacturing facility for processing
rough diamonds was in Surat in 1993 with an installed capacity
of 120,000 carats p.a. In 2006 it commissioned its second manufacturing
unit at Varaccha Rd. Surat with an installed capacity of 120,000 carats p.a.
C.Mahendra Exports was recognized as a DTC Sight holder in 1991 and it is
one of the first entities to receive this recognition.
Co intend to increase number of exclusive retail showrooms to 28 by year
2013 from existing 9. Co and its subsidiary C. Mahendra BVBA ensure supply
of rough diamonds from mining companies like ALROSA Co Ltd, Russia and
its subsidiaries; Harry Winston Diamonds International N.V.
Capital Structure (Rs in Cr) Value
Authorised Capital 62.50
Paid up before the Issue 45.00
Present issue 15.00
Paid up after the Issue 60.00
Objects of the Issue
Finance setting up of a diamond processing unit
at Gujarat Hira Bourse, SEZ, lchchhapore, Surat
Finance Setting up of a jewellery manufacturing
unit at Mumbai
Finance Setting up retail outlets
Finance brand development expenses
Investment in Capital of C. Mahendra BVBA
General Corporate Purposes
Risk Factors
Co has some legal proceeding of income tax
Decrease in Supply from primary sources
suppliers like the DTC, ALROSA Co Ltd may
have adverse effect on business.
Co Business is capital intensive
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