Goenka Diamond and Jewels IPO Analysis

Goenka Diamond and Jewels Limited (GDJL) was incorporated in November 1990 as Goenka Exports Private Limited (GEPL) and was converted into public company on April 2008. The company’s business involves cutting and polishing rough diamonds, and manufacturing and retailing jewellery. Its 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.

The company operates diamond jewellery business under two brands viz. CERES and G WILD catering to specific segments. It retails high end diamond jewellery under the CERES brand targeting the top-end segment of the society while G WILD focuses on internationally designed diamond jewellery targeting the youth. The company runs an integrated business model that includes sourcing of rough diamonds from various sources including its Russian Subsidiary, polishing roughs for export market and internal consumption, jewellery manufacturing and sale of jewellery through its retail chain.

Issue Objectives

• To meet the expenses of establishing stores for G WILD and CERES brand


• To meet working capital requirements for retail jewellery business


• To meet the expenses of establishing a jewellery manufacturing facility in Mumbai


• To meet the expenses of establishing a diamond processing facility in Mumbai


• Further invest in the equity capital of its Subsidiary

IPO Grading / Rating
ICRA has assigned an IPO Grade 2 indicating below average fundamentals.

Issue Open: Mar 23, 2010 - Mar 26, 2010
Issue Type: 100% Book Built Issue IPO
Issue Size: 10,000,000 Equity Shares of Rs. 10
Issue Size: Rs. 135 - 145 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 135 - Rs. 145 Per Equity Share
Market Lot: 40 Shares
Minimum Order Quantity: 40 Shares
Listing At: BSE, NSE

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