Prime Minister Narendra Modi inaugurated the Surat Diamond Bourse last month, the world's biggest workspace. It is also touted to be the world's largest and most modern centre for international diamond and jewellery business. In his address, PM Modi said that the Surat Diamond Bourse will create 150,000 new jobs and become a "one-stop shop" for artisans and businessmen.
As India embarks on emerging as a global economic powerhouse, the diamond industry will play a significant role in helping the country in achieving the milestone. Amid all this, Delhi-based Sheetal Diamonds which is into the manufacturing and exporting of exclusive diamond jewellery worldwide, has approved a preferential issue of 83.25 lakh shares of Rs 5 each at an issue price of Rs 60.
Listed on the Bombay Stock Exchange, it has also announced to foray into the retail sector to tap the rising diamond market in the country.
"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 subject to the approval of shareholders," the company said in a filing on BSE.
The preferential issue is a method to raise funds from the market by issuing warrants to the shareholders. Under The Companies Act, 2013, listed companies can raise funds via methods like a preferential allotment, right issue, and sweat equity shares among others.
According to exchange data, its equity shares are one of the multibaggers that the Indian stock market has delivered in 2023. The stock has risen from around Rs 4.61 to Rs 65.42 in the last year, yielding a return of 1,357 per cent.
Meanwhile, the Surat Diamond Bourse is constructed over 6.6 million square feet and is touted to be the world's largest office building, surpassing the Pentagon which has an area of 6.5 million square feet.
