SRS Ltd., which recently revised the utilization of its initial public offering (IPO) proceeds, is considering to divest investment in its subsidiary, SRS Jewells Ltd. SRS stated that its board will meet on March 31, 2012 to consider selling a stake in the subsidiary, which sells gold and diamond jewelry.
In February, SRS shareholders approved a special resolution to revise the utilization of IPO proceeds. The company raised about $45 million through its IPO of 35 million equity shares in August 2011 to set up cinemas, food courts and restaurants, retail stores and another jewelry manufacturing facility.
The company’s net sales rose 7 percent year on year to $127.7 million (INR 6.31 billion) during its third fiscal-quarter that ended on December 31, 2011, mainly driven by the jewelry business, which contributed $110.8 million (INR 5.47 billion).
SRS has business interest in jewelry manufacturing and retail, cinema exhibition as well as food and beverages.