Sheetal Diamonds Hits Upper Circuit On Preferential Issue of Up To Rs. 49.95 Cr

Sheetal Diamonds Ltd. (BSE: 530525), a fast-growing diamond manufacturer, supplier and exporter of an exclusive range of Real Natural Loose Diamonds and Diamond Jewellery, has announced a preferential issue of up to Rs. 49.95 Crores. The proceeds of this preferential issue will be utilized to foray into the retail sector, whereby the company plans to set up retail stores across the country.

The company, in its board meeting held on 27 December 2023, decided to conduct a Postal Ballot to approve the increase in authorized capital to Rs. 15,50,00,000 consisting of 3,10,00,000 Equity Shares of Rs. 5 each, to issue and allot 83,25,000 Equity Shares of Rs. 5 each at an Issue Price of Rs. 60 including premium of Rs. 55 per share aggregating to Rs. 49.95 Crore to eligible allottees by way of Preferential Issue and to change the name of Company to 'RAJNISH RETAIL LIMITED'.

The proposed allottees include various entities from the promoter and non-promoter groups. The promoter, Mr. Rajnishkumar Singh, will look to subscribe to 18,00,000 shares, while other non-promoter group entities will subscribe to 65,25,000 shares, at a price of Rs. 60 per share.

Mr. Rajnishkumar Singh, the visionary behind Rajnish Wellness Ltd.'s success with Dava Discount stores, had earlier completed the acquisition of Sheetal Diamonds Ltd. As a result of conditions of the open offer and change in control of management, the new board will now be led by Rajnishkumar Singh (promoter and Chairman), and Apra Shah, Lovish Kataria, & Renu Kaur, who will all serve as Additional Non-Executive independent directors. Vijay Kumar Chopra will serve as the CEO and Executive director.

Mr. Rajnishkumar Singh is the Promoter, Founder and Managing Director of Rajnish Wellness Limited, a company that was listed on the Bombay Stock Exchange in the year 2018. The current market capitalization of the company is ~Rs.1000 Crores. He has extensive experience in the retail sector, with demonstrated success in his past endeavours. He has consistently demonstrated an assertive approach and a willingness to undertake calculated risks in the development of innovative and unique products.

On Thursday, the shares of Sheetal Diamonds were trading at a 5% upper circuit limit at Rs 61.66 apiece level during the afternoon deals.