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Gitanjali Gems up 10% amid equity dilution buzz

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Press Trust of India
Last Updated : Jan 20 2013 | 1:37 AM IST

Shares of Gitanjali Gems soared by nearly 10 per cent in early trade on the BSE today amid reports that the jewellery-maker plans to raise $100-150 million through the sale of an 8-10 per cent stake to private investors.

According to media reports, the company is looking to restructure its jewellery brand holding company by divesting 8-10 per cent equity to private equity investors in order to raise $100-150 million.

Buoyed by the buzz, shares of Gitanjali Gems started the day on a robust note and jumped 9.99 per cent to an early high of Rs 217.40 apiece on the Bombay Stock Exchange.

The scrip witnessed a similar surge on the National Stock Exchange and was trading higher by Rs 217.50, or 10.01 per cent, vis-a-vis the previous close.

The upsurge was also bolstered by the company's acquisition of a 90 per cent stake in Milan-based Glantti Italia from its Dubai-based, wholly owned subsidiary -- Gitanjali Ventures DMCC -- for an undisclosed amount yesterday.

Meanwhile, the 30-share Sensex was up by 90.51 points at 20,115.93 at 1043 hours today.

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First Published: Dec 29 2010 | 11:52 AM IST

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