The Hindu Business Line : Gitanjali Gems fixes IPO price band at Rs 210-250

Gitanjali Gems Ltd, manufacturers and retailers of diamond and gold jewellery in India, is entering the capital market with an IPO of 1.7 crore shares of Rs 10 each in a 100 per cent book built issue. 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.

Post-IPO, the promoters' holding would be around 70 per cent. Members of the Choksi family are promoters of the company.

According to Mr Mehul Choksi, Chairman, Gitanjali Group, the Indian branded jewellery market is on a trajectory of growth evolving towards brands and fashion trends.

While the overall jewellery market is growing at 10-20 per cent compound annual growth rate (CAGR), the branded jewellery market is growing at 50 per cent, Mr Choksi said.

Gitanjali Gems Ltd is planning expansions to capture the growth and for this, it is entering the capital market with an initial public offering. The expansion plan involves an investment of more than Rs 300 crore.

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

It also covers investment in subsidiaries, joint ventures and associate companies, and capital expenditures for expansion of retail operations and provision for future acquisitions.

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

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