Sunday, April 4, 2010

Goenka Diamond IPO - Analysis,Subscription,Allotment,Listing

Goenka Diamond & Jewels Limited is in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewellery. Goenka's product profile includes rings, earrings, pendants, bracelets, necklaces, etc. which are manufactured using polished diamonds, precious and other semi precious stones which are set in gold. Company has its own diamond processing unit at SEZ in Surat and in Mumbai.

The objects of this Issue are to meet the expenses of establishing stores for G WILD Stores; meet the expenses of establishing stores for CERES Stores; meet working capital requirements for jewellery business; meet the expenses of establishing a jewellery manufacturing facility in Mumbai; meet the expenses of establishing a diamond processing facility in Mumbai and further invest in the equity capital of subsidiary. The company will utilise around Rs 123.55 crore for above objects.

The price band for this issue is between Rs 135-145 per share and the one crore shares IPO will open on March 23 and close on March 26, 2010.

The book running lead manager to the issue is SBI Capital Markets Limited and Karvy Computershare Private Limited is the registrar.

The IPO just managed to get fully subscribed at 1.07 times. At the close of the IPO,
QII segment got subscribed 0.78 times
NII segment got subscribed 2.99 times
Retail segment got subscribed 0.66 times

Click here to check if you have been alloted Goenka Diamond shares!

The listing for Goenka Diamond wasn't good. Goenka Diamond and Jewels listed with discount of 8.15% to its issue price of Rs 135 per share on the NSE. It touched a low of Rs 92.35 in early trade and then went on to a intraday high of Rs 141.35, before finally closing at Rs 127.85, down Rs 7.15, or 5.3% on its debut.

Watch this blog for more details on subscription, allotment and listing!


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