Another big-ticket buyout could be on the cards. A US-based buyout fund and diamond industry giant De Beers are learnt to have evinced interest in jewellery maker and retailer Rajesh Exports for acquiring 51% stake from its promoters.
According to industry sources, while the suitors are yet to make a formal bid, the separate offer by both parties will be to acquire majority control at a premium to the current market price of the listed firm.
The market capitalisation of Rajesh Exports is currently at Rs 2,650 crore. The share price of the company went up by 12.4% last week to close at Rs 729.50 on BSE on Friday. An acquisition of 51%, if it goes through, will also trigger a mandatory open offer for an additional 20% of the company.
It remains to be seen whether the promoters, who hold 61.5% in the company, agree to sell.
The Bangalore-based Rajesh Exports shot into the limelight in 2004 when its revenues jumped more than 13 times in a single year to close at about Rs 3,000 crore.This was due to the commissioning of its new Bangalore-based manufacturing unit, the world’s largest jewellery making unit. The market capitalisation of the company too has shot up from just about Rs 43 crore in FY03 to Rs 2,650 crore now.
Read more in The Economic Times article
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