Renaissance Jewellery, manufacturer of studded gold, platinum and silver jewellery, will list on the bourses on December 12, 2007. Experts told Moneycontrol.com that the stock is likely to open at around Rs 190 as against its issue price of Rs 150.
Arpit Agrawal Head of Research, Arihant capital markets said, "Due to strengthening rupee Jewellery Industry is passing through a very bad phase and margins are under severe pressure. Presently, the company is into manufacturing and sale of studded gold platinum and silver jewellery and over 95% of its revenue is derived from the U.S. market. In case of good listing profits can be booked."
R S Iyer of K R Choksey Securities said, "It is likely to debut at around Rs 190-195. One should start booking profits above Rs 210."
According to Investment Advisor, S P Tulsian, "Renaissance Jewellery is likely to list at Rs 190 against issue price of Rs 150."
The company had entered capital market with a public issue of 53.24 lakh shares of Rs 10 each at a price band between Rs 125 and Rs 150. It was subscribed 23.63 times.
Renaissance Jewellery in into business of manufacturing studded gold, platinum and silver jewellery. Company's retail arm RRVPL currently has 8 retail outlets in India.
The company has issued one detachable warrant for every two equity shares allotted. Warrant exercise price would be at a fixed premium of 25% over the issue price. A warrant exercise period will commence post 16 months from the date of allotment of the equity shares and warrants.
The company plans to use the proceeds from the issue for expansion of manufacturing capacity at Bhavnagar unit (100% EOU), expansion of capacity and modernization of the Mumbai units, and investment in subsidiary.
Book running lead manager to the issue is Edelweiss Capital Limited and Intime Spectrum Registry Limited is the registrar.
Source: Moneycontrol.com
Tuesday, December 11, 2007
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