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Gitanjali IPO to open on Feb 16

Gitanjali Gems it will enter the capital market through its IPO of 17,000,000 equity shares of Rs 10 each opening February 16.

india Updated: Feb 14, 2006 16:11 IST

Gitanjali Gems Ltd said on Tuesday that it will enter the capital market through its IPO of 17,000,000 equity shares of Rs 10 each opening February 16 by a 100 per cent book building process and hopes to raise Rs 330 crore to be used for retail expansion and setting up two more jewellery manufacturing bases in Hyderabad.

Price band for the offer is Rs 170-195 per equity share. ICICI Securities Ltd and Keynote Corporate Services are the book running lead managers for the issue which would close on February 21, 2006. It would be listed on BSE and NSE, Executive Director, Finance of GGL GK Nair told reporters.

"We will use 50 per cent of the proceeds for our retail expansion, 25 per cent in upgrading the existing manufacturing facilities and setting up two more diamond and jewellery manufacturing units in Hyderabad and the remaining 25 per cent will be spent on future domestic acquisitions and general corporate purposes," Nair said.

The company which owns popular diamond and gold jewellery brands like Gili, D'damas, Nakshatra and Asmi, plans to increase its retail presence from 620 to 1500 in three years time.

The two manufacturing base, estimated to cost Rs 80-90 crore, also would be built during the same timeframe.

GGL presently has five manufacturing bases and holds around 12-15 per cent of the market share in the branded jewellery segment. "We hope this IPO will help increase our market share to 25 per cent," Nair said.

New Delhi, Feb 14 (PTI) Gitanjali Gems Ltd today said it will enter the capital market through its IPO of 17,000,000 equity shares of Rs 10 each opening Feb 16 by a 100 per cent book building process.

The company also hopes to raise Rs 330 crore for retail expansion and for setting up two more jewellery manufacturing bases in Hyderabad, Executive Director, Finance of GGL GK Nair told reporters.

Price band for the offer is Rs 170-195 per equity share. ICICI Securities Ltd and Keynote Corporate Services are the book running lead managers for the issue which would close on February 21, 2006. It would be listed on BSE and NSE, Nair said.

"We will use 50 per cent of the proceeds for our retail expansion, 25 per cent in upgrading the existing manufacturing facilities and setting up two more diamond and jewellery manufacturing units in Hyderabad and the remaining 25 per cent will be spent on future domestic acquisitions and general corporate purposes," Nair said.

The company which owns popular diamond and gold jewellery brands like Gili, D'damas, Nakshatra and Asmi, plans to increase its retail presence from 620 to 1500 in three years time.

The two manufacturing base, estimated to cost Rs 80-90 crore, also would be built during the same timeframe.

GGL presently has five manufacturing bases and holds around 12-15 per cent of the market share in the branded jewellery segment. "We hope this IPO will help increase our market share to 25 per cent," Nair said.

First Published: Feb 14, 2006 16:11 IST