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Goldman, Merrill pick up 5.7% in Rajesh Exports

Our Bureau  |  Bangalore 

Global financial investors Goldman Sachs and Merrill Lynch have picked up 5.7 per cent stake in the Bangalore-based jewellery exporter Rajesh Exports for Rs 14 crore. Goldman Sachs has have bought 3 lakh shares at Rs 351 each amounting to Rs 10.53 crore for a 4.28 per cent stake.
Merrill Lynch has picked up 1 lakh shares at Rs 353 each for Rs 3.53 crore amouting to 1.42 per cent stake.
Mahesh Mehta, a co-promoter and also brother of Rajesh Mehta, chairman, Rajesh Exports, has sold this stake.
In addition to this block deal, a third investor has bought 1.42 per cent of the total paid-up capital of the company. His identity is yet to be ascertained by the company.
Said Rajesh Mehta: "Goldman Sachs and Merrill Lynch approached us to pick up a stake in our company. On mutual consent, Mahesh offloaded a part of his stake. After this sale, Mahesh still holds 6.8 per cent in the company. As we are planning to go global with our branded jewellery plans, we thought we should be associated with such reputed names in the financial world."
He added that the company has grown exponentially due to capacity expansion, stringent quality control and strong client relationships. "We believe having equity participation by platinum investors such as these two which lends tremendous credibility to us in the domestic and international markets," Mehta noted, adding that as per his understanding, the equity has been bought with a long term investment perspective.
Rajesh Exports plans to end the current fiscal at Rs 3,500 crore with margins of close to Rs 50 crore and is in the process of setting up retail outlets for its branded jewellery foray. The company said they are making strategic acquistions of established jewellers in the marketplace.

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First Published: Fri, February 18 2005. 00:00 IST
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