Date:23/12/2005 URL: http://www.thehindubusinessline.com/2005/12/23/stories/2005122301920800.htm

Back Gitanjali Gems to invest Rs 300 cr for expansion

Our Bureau

To part finance its expansion, Gitanjali Gems proposes to enter the capital market soon.

Mumbai , Dec 22

GITANJALI Gems Ltd, an integrated diamond and jewellery manufacturing company, is planning an expansion involving an investment of more than Rs 300 crore.

The plan includes setting up diamond and jewellery manufacturing facilities at the proposed Gems and Jewellery Special Economic Zone in Hyderabad, another jewellery manufacturing facility in Mumbai and the expansion of the existing jewellery manufacturing facility at SEEPZ, Mumbai.

It would also invest in subsidiaries, joint ventures and associates companies, and expand retail operations and make provisions for future acquisitions.

To part finance all this, Gitanjali Gems proposes to enter the capital market soon with an IPO of 17,000,000 equity shares of Rs 10 each in a 100 per cent book-built issue.

The company has filed the Draft Red Herring Prospectus with SEBI.

The issue will constitute 28.81 per cent of the fully diluted post-issue capital of the company.

ICICI Securities Ltd and Keynote Corporate Services Ltd are Book Running Lead Managers for the issue.

The present operations of the company include sourcing rough diamonds from primary and secondary source suppliers in the international market, cutting and polishing the rough diamonds for export to international market and the manufacture and sale of diamond and other jewellery through its retail operations.

Through its subsidiaries and associate companies Gitanjali Gems retails some of the most popular jewellery brands — Nakshatra, D'Damas, Asmi, Gili and Giantti.