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Saturday, January 07, 2006

Gitanjali Gems fixes price band for its IPO

The proposed initial public offering of Gitanjali Gems is to be priced in the band of Rs 210-250 per share, reports The Hindu Business Line.

Gitanjali Gems, 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 % book built issue. The issue will constitute 28.81 % of the fully diluted post-issue capital of the company.

ICICI Securities and Keynote Corporate Services are book-running lead managers for the issue.

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

According to 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% compound annual growth rate, CAGR, the branded jewellery market is growing at 50%, Choksi said.

Gitanjali Gems 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 (Rs 3 billion).

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