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Gitanjali's IPO plan for expansion in Mumbai & Hyderabad

28 Dec '05

2 min read

Branded jewelry seller Gitanjali Gems (GGL) informed that the company is planning to initial public offering (IPO) for expansion of fund.

Riding on a boom in the domestic diamond-studded jewellery segment, Gitanjali Gems (GGL) an integrated diamond and jewellery maker is going in for an expansion plan.

The proposed expansion plan involves an investment of more than Rs 300 crore and will be primarily funded by an initial public offering (IPO).

GGL, through its arms and associates, currently retails some of the famous brands in the diamond industry here. Some of the popular brands like Nakshatra, D'damas, Asmi, Gili and Ginatti are available through its outlets spread across the country.

GGL's expansion plan includes setting up of a SEZ in Hyderabad and an additional jewellery manufacturing facility in Mumbai. It also plans to expand its facility in SEEPZ, Mumbai. Mehul Choksi of GGL told that the diamond market in India is projected to grow at around 20 percent per annum.

India mainly imports rough diamond cuts, which are then polished before fitting them into diamond-studded jewellery mainly for reexporting.

The proposed IPO will consist of 17m equity shares of Rs 10 each in a 100 percent book-built issue. The issue will contribute 28.81 percent of the fully diluted post-issue capital of the company.

Integrated diamond and jewellery maker GGL takes pride in its rich heritage and outstanding reputation successfully combining all the positive qualities from its past with an innovative approach to design and craftsmanship.

The Economics Times

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