Gitanjali and Classic Diamonds to Raise Funds in International Markets
December 12, 07Two publicly listed Indian firms, Gitanjali Gems and Classic Diamonds, have become the latest gem and jewelry companies to approach international markets in order to raise overseas funds. The most recent entrant in this category, Renaissance Jewellery, was officially listed on the exchange on December 12.
Gitanjali Gems informed the stock exchange that it has priced its $180-million global depository receipts (GDR) offering at $9.67 per GDR (including an over-allotment option of up to $30 million). Each GDR represents one equity share of the company at a nominal value of Rs 10 ($0.25) each.
The company plans to list the GDR on the Professional Securities Market of the London Stock Exchange. While details of how the proceeds will be utilized have not been disclosed, the company is on an aggressive expansion drive in both domestic and international markets.
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Meanwhile the board of directors of Classic Diamonds approved in principle on December 12 plans to raise further funds for the company through foreign markets by way of foreign currency convertible bonds or by issuing ADR's or GDR's.
Also Renaissance Jewellery, whose IPO last month was oversubscribed 23.6 times, was listed on the Bombay Stock Exchange on December 12. The stock opened at Rs 190 ($4.84) against the issue price of Rs 150 ($3.82).
The company has raised Rs 798 million ($20.32 million) from the IPO, which it intends to utilize for the modernization and expansion of its manufacturing units and development of exports as well as its presence in the Indian market through its brand, Lucera.