| Issue Open | January 27, 2009 |
| Issue Close | January 28, 2009 |
| Floor Price | Rs.70 |
| Cap Price | Rs.75 |
- To open new retail outlets in Dindigul, Theni, Tuticorin, Nagercoil, Tirunveli, Kovilpatti and Sivakasi - Rs.21.43cr
- To meet the working capital requirement - Rs.22.78cr
- To meet the expenses of the Issue - Rs.2.55cr
- To list the equity shares of the Company on the Stock Exchanges
Promoters:
| Name | Acquisition Cost per share |
| Mr.Balarama Govinda Das | Rs.11.85 |
| Mr. Ba. Ramesh | Rs.12.01 |
| Mr. N.B. Kumar | Rs.11.85 |
Company:
- Contingent liabilities worth Rs.22 lakhs not accounted for in balance sheet.
- Started as Balu Jewellery a partnership concern then changed name to Thangamayil Jewellery Private Limited in the year 2000.
- Thangamayil Jewellery has its showroom at Netaji Road, Madurai.
- The showroom is housed in a three storied set up in total area of 11,416 sq. ft.
- Thangamayil Jewellery trades in Gold Jewellery, Diamond and Platinum jewels.
- The ornaments are also made to order as per specific requirements by the customer and the same are manufactured at the company’s unit near Madurai.
- Further gold Jewels are bought readymade from various dealers in the states of Andhra Pradesh, Gujarat, Kerala and West Bengal, according to the designs, models and current fashions and demand in the market for sale at the counters.
- Thangamayil Jewellery introduced the Hallmarking practice for the first time in Madurai.
- Customers often bring in jewels purchased from other retailers for exchange and remaking into new jewellery got this purpose Thangamayil Jewellery has acquired sophisticated machinery to measure the quality and carat value of the gold brought in.
- Thangamayil Jewellery has customer base to over 1,00,000.
- Thangamayil Jewellery has already opened showrooms in Rajapalayam, Karaikudi and Ramnathapuram.
The Gems & Jewellery Industry:
- The diamond manufacturing industry in India has traditionally been one of the largest
- components of the global trade in diamonds.
- Until the 18th century, India was the only known source of diamonds in the world.
- India occupies a prominent place in the global diamond industry and has established its position as the largest exporter of cut and polished diamonds in the world.
- Nearly 9 out of 10 diamonds sold worldwide are cut and polished in India.
- The gems and jewellery industry forms the single largest component of merchandise exports in the country.
- gems and jewellery industry is growing at a rate of 15%.
- The domestic market is estimated to be around US$ 16.1 billion.
- The All India Gems and Jewellery Trade Federation is the nodal agency representing 300,000 jewellers across the country.
- India is the largest consumer of gold in the world. It consumes nearly 800 tonnes of
- gold that accounts for 20 per cent of world gold consumption, of which nearly 600 tonnes go into
- making jewellery.
- The industry has the best skilled manpower for designing and producing high volumes of exquisite jewellery at low labour costs.
- Gold jewellery and diamonds are the two major segments of the sector in India.
- Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamonds as well as gemstone studded jewellery.
- India is expected to have a diamond bourse soon.
- The United States and Hong Kong were the largest importers of gems and jewellery from India,
- with a share of 26 per cent each, followed by UAE at 21 per cent.
The gems and jewellery sector can be further classified into the following sectors based on characteristics, manufacturing processes and position in the value chain:
- Gemstones: consisting of diamonds and precious, semi-precious and synthetic coloured stones.
- Jewellery: Consisting of gold jewellery, studded jewellery and silver jewellery
- Pearls
- Diamonds: till 1725, India was the only producer of diamonds in the world. The Golconda mines were world-famous and even today, a Golconda diamond fetches a very high price in the international market.today diamonds are mined only at Panna in the Indian state of Madhya Pradesh by the National Mining Development Corporation.
There are broadly three retail formats followed by branded jewelers in India:
- Exclusive outlets at malls and other key shopping centers in major cities showcasing various
- models of the brand
- Kiosks/ displays in departmental stores and malls
- Display of branded jewellery in shops of local jewelers
Government Initiatives:
- 100 per cent foreign direct investment (FDI) in gems and jewellery through the automatic route is allowed.
- The government has lowered import duty on platinum and has exempted rough coloured precious gems stones from customs duty.
- Rough, semi-precious stones are also exempt from import duty.
- Duty-free import of consumables for metals other than gold and platinum up to 2 per cent of
- freight on board (f.o.b) value of exports.
- Duty-free import entitlement for rejected jewellery up to 2 per cent of f.o.b value of exports.
- Import of gold of 18 carat and above under the replenishment scheme.
- Setting up of SEZs and gems and jewellery parks to promote investment in the sector.
- In May 2007, the government abolished import duty on polished diamonds.
- The government has raised the limit value of jewellery parcels for export through foreign post
- office (including via speed post) from US$ 50,000 to US$ 75,000 and the time period for re-import of branded jewellery remaining unsold has been extended from 180 days to 365 days.
- The export of coloured gemstones on a consignment basis has been allowed.
Peer Group:
- Flawless Diamond India Ltd.
- Rajesh Exports Ltd.
- Renaissance Jewellery Ltd.
- Shantivijay Jewels Ltd.
- Shrenuj & Co. Ltd.
- Su-Raj Diamonds & Jewellery Ltd.
- Suashish Diamonds Ltd.
Source: InvestingMantra Research, Thangamayil Jewellery RHP, IBEF, artofjwellery
