Gitanjali Gems IPO Begins Today

Gitanjali Gems Ltd., one of the largest manufacturers and retailers of diamonds and jewelry in India, is entering the capital market to fund its planned expansion into the retail sector. The company is offering 17 million equity shares of 10 rupees each through a book building process. The shares are priced at 170 – 195 rupees per share.

The company intends to use the profits of the issue for investment in the expansion of retail operations, to establish a diamond manufacturing facility at the proposed Gems and Jewellery Special Economic Zone at Hyderabad, establishing additional jewelry manufacturing facility at Andheri, Mumbai, and the development of its existing export oriented jewelry manufacturing facility at SEEPZ, Mumbai.

According to the newindpress.com the company is planning to double its retail outlets from 620 to over 1,200 over the next three years. The expansion plans come at a time of growth in the Indian gold and jewelry market, which has grown at a rate of 50 percent. "We are the leading player in this segment and we want to consolidate our position by doubling our retail outlets in the next three years,” said G K Nair, director of Gitanjali Gems, reports newindpress.com.

The company also intends to focus on the U.S. and Far East markets by increasing its exports to these areas.

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.