Malabar Group’s overseas arm lists on Nasdaq Dubai Private Market

While, with this registration, shares of Malabar Investments will be not be publicly traded, private trading of the securities will take place through Emirates NBD Securities, said the company, which is among the largest jewellery retailers globally.

Along with the registration of its shares with the Nasdaq Dubai’s central securities depository, Malabar Investments has also shifted its international base to the Dubai International Financial Centre.

The Kozhikode-based Malabar Gold and Diamonds, the group’s flagship operating business, currently generates an annual turnover of USD 4.51 billion. It runs a network of over 260 outlets and 14 wholesale units and 14 jewellery manufacturing centres across 10 countries in the Middle East, South Asia, Far East and the US.

The twin moves significantly strengthen the company’s links with investors and provide it with a transparent, well-regulated, efficient and secured solution for its share-related corporate actions, Group Chairman M P Ahammed told PTI from Dubai on Wednesday, adding that the market opening bell was rang on Sunday.

He added that this will also help the company prepare better for the IPO plans for the parent company.

The company’s entry into the Nasdaq Dubai Private Market enables its over 300 shareholders from international operations to buy and sell shares with the approval of the board through brokerages like Emirates ENBD Securities. While share transfer will take place on Nasdaq Dubai’s CSD, trading will take place off-exchange as the company is still privately held, he said.

The Dubai IFC is the leading financial hub for the Middle East, Africa and South Asia, which comprises 72 countries with a population of three billion and a nominal GDP of USD 7.7 trillion.

Ahammed also said the Dubai listing will pay the way for Malabar Group’s public listing sometime in 2024, which will be dual listing in India and the US.

As the company continues to grow internationally, it is necessary that the holding company is based in a jurisdiction like Dubai IFC, which will automatically make it more transparent and formal.

The group will open 56 more stores this fiscal — 40 of them in India and 16 internationally with an investment of USD 220 million, he said.

With 13 cluster manufacturing units in India and the GCC, the group has 12 jewellery brands offering gold, diamonds, silver jewellery and lifestyle articles.

While Malabar Gold and Diamonds is the flagship and cash cow of the Malabar Group that began in 1993, it also has interest in residential realty, retail and IT. The group is now owned by over 4,000 shareholders and employs over 13,000, said Ahammed, who is also the general secretary of the Kerala Jewellers’ Federation.