C. Mahendra to launch IPO

C. Mahendra Exports Ltd. has initiated plans to issue an initial public offering (IPO), placing 13 million shares at Rs.10 each on offer. This will be through the 100 percent book building process. The company is simultaneously building plans to expand its portfolio. It will employ Rs.202.08 million ($4.68 mn) from its IPO proceeds, for setting up a diamond cutting and polishing unit in Surat. Rs.238.27 million ($5.52 mn) will be invested in a jewellery manufacturing facility proposed in Mumbai.

For its retail expansion venture, Rs.1 billion ($23.1 mn) will be invested in launching 43 new exclusive retail outlets across India, by 2011 and will fuel its existing 'Ciemme' jewellery brand with a further funding of Rs.200 million ($4.6 mn). It will spend Rs.1 billion to increase its sourcing abilities of its subsidiary, C. Mahendra BVBA, a company procuring rough diamonds from Alrosa, Harry Winston and other Canadian and African producers.