Key Quantitative Figures

  • Issue Size: Aggregate amount not exceeding ₹40,00,00,000 (Forty Crores)
  • Face Value: ₹10 per equity share
  • Securities Premium: ₹[•] per share (to be determined)
  • Issue Price: ₹[•] per share (including premium)
  • Existing Paid-up Capital: 1,09,75,625 equity shares (₹1,097.56 lakhs)
  • Post-Issue Capital: [•] equity shares (assuming full subscription)
  • Estimated Issue Expenses: ₹[•] (to be determined)

Parties Involved

  • Registrar to Issue: MUFG Intime India Private Limited (SEBI Reg No: INR000004058)
  • Bankers to Issue: ICICI Bank Limited (SEBI Reg No: INBI00000004)
  • Escrow Collection Bank: ICICI Bank Limited
  • Statutory Auditor: M/s. Girish L Shethia, Chartered Accountants
  • Monitoring Agency: Acuite Ratings & Research Limited (SEBI Reg No: IN/CRA/006/2011)
  • Designated Stock Exchange: BSE Limited

Purpose/Rationale

Net proceeds from the issue are proposed to be utilized as follows:

1. Augment working capital requirements: ₹500.00 lakhs

2. Funding acquisition of Aerocom Automotives Private Limited: ₹2,450.00 lakhs (51.82% stake for expansion into automotive components business)

3. Investment in subsidiary VEM Plastic Molding Private Limited: ₹400.00 lakhs

4. General Corporate Purposes: ₹[•] lakhs (not exceeding 25% of gross proceeds)

Financial Impact

  • Capital Dilution: The issue will increase the paid-up capital from ₹1,097.56 lakhs to [•] lakhs
  • Securities Premium Account: Will increase from ₹2,114.53 lakhs to [•] lakhs
  • Promoter Holding: Promoters and promoter group currently hold approximately 67% and intend to subscribe to their entitlements

Capital Structure Impact

  • The rights equity shares will rank pari passu with existing equity shares
  • Fractional entitlements will be ignored, with preference given for one additional share to those applying for additional shares
  • No change in control is anticipated as promoters intend to maintain their shareholding

Promoter Participation

  • Mudit Sharadkumar Jain intends to renounce his entire entitlement in favor of promoter group members
  • Corporate promoters Bluerock Industrial Infrastructure Management LLP and Bluerock Infrastructure Solutions LLP intend to subscribe fully to their entitlements and may apply for additional shares
  • Other promoter group members intend to subscribe fully or partially and may renounce balances

Risk Factors Disclosed

The document discloses 65 risk factors including:

  • Expansion into automotive industry with limited experience
  • Seasonal fluctuations in jewelry business
  • Qualified auditor opinions on bank balances, GST reconciliation, and employee benefits
  • Pending income tax disputes totaling ₹111.77 lakhs across multiple assessment years
  • No long-term contracts with customers
  • Dependence on supplier quality
  • High competition in jewelry industry
  • Negative cash flows in recent years
  • Cyber security risks
  • Inventory management risks

Legal and Compliance Status

  • No wilful defaulter or fraudulent borrower classification for company, promoters, or directors
  • No outstanding material litigation involving criminal liability, economic offenses, or regulatory violations
  • Pending application with BSE for reclassification of certain shareholders from promoter to public category
  • Compliance with SEBI LODR regulations except for inadvertent failures to ratify certain related party transactions

Additional Information

  • The issue is not underwritten
  • No appraising agency was involved in assessing the objects of the issue
  • Minimum subscription requirement is not applicable under Regulation 86(1) of SEBI ICDR Regulations due to promoter participation
  • Equity shares will be allotted only in dematerialized form
  • ASBA is mandatory for all applications
  • The company has received in-principle approval from BSE for listing the rights equity shares