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Thursday, February 09, 2006

Gitanjali Gems IPO opens on February 16

Gitanjali Gems, manufacturers and retailers of diamonds and jewellery, is entering the capital market with a public issue of 1,70,00,000 equity shares of Rs 10 each through the 100% book-building route, report agencies.

The issue opens on February 16 and closes on 21.

Company's Chairman and Managing Director Mehul Choksi said that the proceeds of the issue would be used for expansion of retail operations and setting up of a diamond and jewellery manufacturing facility at the proposed Gems and Jewellery Special Economic Zone at Hyderabad.

The company also plans to set up and expand its jewellery manufacturing facilities in Mumbai and will use the proceeds to fund future acquisitions as also for general corporate purposes.
Choksi said that price band of the issue is between Rs 170 to Rs 195 per equity share and that the company would reserve 50% of the net issue to qualified institutional buyers, QIBs, of which 5% would be made available for allocation on a proportionate basis to mutual funds.

A minimum of 15% of the net issue would be allotted on a proportionate basis to non-institutional bidders and at least 35% of the net issue would be available for allocation on a propotionate basis to retail individual bidders.

The book-running lead managers to the issue are ICICI Securities and Keynote Corporate Services while Karvy Computershare is the registrar to the issue.

Source: Moneycontrol


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