Flawless Diamond to raise Rs 100 crore

Flawless Diamond India Ltd has announced that the Board of Directors of the Company at its meeting held May 28, 2009, has discussed in detail and agreed about the transferring of Company's retails business into a separate own subsidiary Company. That this is the better way to de-merge Company's retail business of Designer Jewellery into a Company's fully owned subsidiary Company. Which will help the Company in the long run. The Board has decided to appoint expert to work out the action plan for the same. It is also decided that this separate entity will be listed on the Stock Exchanges as separate entity latter. It also helps to unlock the value of Share Holders.

The Board also discussed the requirement of fund for expansion of its business. The Board has decided to raise the fund upto 1000 Million INR. This will be through mix combination of Equity and debt. The Board has appointed Mr. Bhawar U Jain, Managing Director to negotiate with the Investors, Institutions and Banks for the same.

Further the Company's Managing Director Mr. Bhawar U Jain says that "Global Scenario of diamond market is improving and exports demand has started Flowing in the system, stability in the domestic market will ultimately give a boosting to the exports thrust area like diamond and Designer Jewellery business which will improve strongly and immediately. Out Company has enough strength to take benefit of the given situation which will help us to grow stronger and faster in the near future."

The stock was trading at Rs.36, down by Rs.0.50 or 1.37%. The stock hit an intraday high of Rs.37.75 and low of Rs.36.

The total traded quantity was 25307 compared to 2 week average of 23288.

Source : Equity Bulls

Keywords