The shares of diamond jewellery manufacturing company C Mahendra Exports registered appreciable trading levels on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), yesterday on its launch. The company had received a similar good response for its IPO launched in early January 2011, which was oversubscribed by 2.78 times on the final day of issue, and generated a total of Rs 165 crore.

On the NSE the shares opened at Rs 114, a premium of Rs 4 over issue price of Rs 110. At 9:36 hours IST, a share was trading at Rs 118.70, up 7.91 percent after hitting a high of Rs 121 in early trade.

On the BSE share trading started at Rs 111, and moved to a maximum limit of Rs 120.90 and a minimum of Rs 110. It was trading at Rs 117.05 as against issue price. Total traded volume on both exchanges in initial trade was at 98,02,173 equity shares while issue size was at 150 lakh shares.

The IPO is expected to fund the company plans of setting up of a diamond processing unit at Gujarat Hira Bourse, SEZ, Ichchhapore, Surat; a jewellery manufacturing unit at Mumbai; retail outlets; brand development expenses and investment in capital of C Mahendra BVBA.

The C Mahendra Group is an integrated diamond and diamond jewellery player encompassing sourcing of rough diamonds, trading of rough and polished diamonds, processing of diamonds and manufacture of diamond jewellery.