Goenka Diamond zooms on investing Rs 4.90 crore to acquire OCD of Gem Gold Mining

Goenka Diamond & Jewels is currently trading at Rs. 209.40, up by 2.95 points or 1.43% from its previous closing of Rs. 206.45 on the BSE.

The scrip opened at Rs. 207.60 and has touched a high and low of Rs. 214.00 and Rs. 207.40 respectively. So far 30709 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 214.00 on 06-Aug-2012 and a 52 week low of Rs. 28.20 on 22-Dec-2011.

Last one week high and low of the scrip stood at Rs. 214.00 and Rs. 178.50 respectively. The current market cap of the company is Rs. 667.92 crore.

The promoters holding in the company stood at 72.36% while Institutions and Non-Institutions held 5.05% and 22.58% respectively.

Goenka Diamond & Jewels has invested Rs 4.90 crore to acquire, by way of subscription 12%, Optionally Convertible Debentures (OCD) of Gem Gold Mining convertible into equity shares or redeemable at anytime beginning thirty days from the date of issue and ending three years from the date of issuance and allotment of the debenture i.e. August 03, 2012.

Upon conversion, based on the current capital structure, the OCD could fetch the company around 20% to 70% of the equity stake in Gem Gold Mining.

Goenka Diamond & Jewels business is broadly divided into diamond processing business and jewellery business. Its diamond processing business consists of trading, cutting and polishing of diamonds. The jewellery business consists of manufacturing and retail of jewellery under CERES and G WILD brands and also includes its wholesale jewellery operations.