Sheetal Diamonds plans to venture into retail, promoters in talks to start new business line

The diamond manufacturing company has informed exchanges that its board of directors has approved the preferential issue of 83,25,000 equity shares

MUMBAI: Diamond manufacturer, supplier, and exporter Sheetal Diamonds has plans to foray into the retail sector. According to the company, it plans to open retail stores across the country. For this, the company has announced a preferential issue of up to Rs 49.95 crore.

The company has informed exchanges that its board of directors has approved the preferential issue of 83,25,000 equity shares. “…has approved a preferential issue of 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 (rupees forty-nine crore fifty lakhs) subject to the approval of shareholders,” the company said in a regulatory filing.

The company, in its board meeting, also 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.

Meanwhile, the company added that new promoters of the company intend to start a new line of business than the existing business and has, therefore, proposed to change its existing name Sheetal Diamonds Limited to Rajnish Retail Limited.

“Accordingly, the company has gone through many structural changes such as change of management and change in the main object contained in MOA of the company. Further, the company has proposed to change its existing name SHEETAL DIAMONDS LIMITED to RAJNISH RETAIL LIMITED,” the filing reads.

Courtesy: zeebiz.com