Gitanjali Gems to Fund Expansion Plans with IPO

Gitanjali Gems Ltd., one of the largest manufacturers and retailers of diamonds and jewelry in India, is entering the capital market to raise three billion rupees ($67.29 million) to fund its planned expansion into the retail sector.

The expansion plan includes setting up diamond and jewelry manufacturing facilities at the proposed Gems and Jewelry Special Economic Zone in Hyderabad, establishing additional jewelry manufacturing facilities at Andheri, Mumbai and the development of its existing export oriented jewelry manufacturing facility at SEEPZ, Mumbai.

The proposed IPO is to be priced between Rs 210 to 250 ($4.7 to $5.6) per share. The issue will constitute 28.81 percent of the fully diluted post-issue capital of the company.

Gitanjali were unavailable to comment on the story.

While the overall jewelry market is growing at 10 to 20 percent compound annual growth rate (CAGR), the branded jewelry market is growing at 50 percent, Gitanjali Group chairman Mehul Choksi told Sify Finance.

Gitanjali Gems, established in 1966, is a daughter company of DIGICO, a DTC Sightholder. Gitanjali Gems jewelry brands include Nakshatra, Asmi, Gilli and D’damas.