C Mahendra Exports IPO price band set

“The company intends to utilize the proceeds of the issue towards,setting up of a diamond processing unit at Gujarat and setting up a jewellery manufacturing unit at Mumbai. The company is also looking at setting up retail outlets and financing its brand development expenses,” C Mahendra Exports Chairman,Mahendra Shah told reporters here.

The company will spend Rs 36 crore in setting up of a diamond processing unit at Gujarat Hira Bourse,SEZ at Surat.

The factory will have facilities of sawing,polishing and assortments of diamonds.

The company will spend Rs 23.6 crore for setting up of a jewellery manufacturing unit at Mumbai,which will enable it to widen its product portfolio in the growing diamond studded jewellery market,company’s Director,Sandeep Shah said.

The company also intends to infuse Rs 80 crore in the form of equity contribution in its Antwerp-based subsidiary,C Mahendra BV/BA. It is engaged in procuring rough diamonds from leading diamond mining companies like De Beers,Alrosa Company Ltd,Russia and its subsidiaries.

The company is presently procuring significant part of rough diamonds from the DTC and other rough diamond suppliers directly and though C Mahendra BV/BA.

The group has established marketing entities in HongKong,and USA to cater to some of the major market for cut and polished diamonds and diamond jewellery across the globe.

In the domestic market,the company plans to open 15 new exclusive retail outlets by year 2011. The company has opened 9 exclusive retail stores and has 1 franchisee stores,Shah said.

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited.