Gitanjali Gems gains on group restructuring plans

The company plans merger of its subsidiaries to cut costs and improve cash flows

Shares of Gitanjali Gems were up nearly 6% at Rs 46 on the Bombay Stock Exchange after the company announced plans to rationalise the existing group structure and create synergy of operations.

The company in a release said its board approved the merger of step down subsidiaries such as Asmi Jewellery India Ltd and Spectrum Jewellery Ltd with Nakshatra Brands Ltd.

Further, the board also approved merger of Gitanjali Jewellery Retail Ltd and Gitanjali Lifestyle Ltd with GILI India Ltd, a step down subsidiary of the company, the release added.

The stock opened at Rs 43.25 and touched a high of Rs 47.40. At 11:15AM, over 814,000 shares were traded on the Bombay Stock Exchange.