Gitanjali Gems rose 6.77% to Rs 46.50 at 10:00 IST on BSE after the Gitanjali group is presently undertaking consolidation exercise at group level with a view to rationalize the existing group structure and create synergy of operations.
The company made announcement after market hours yesterday, 21 April 2015.
Meanwhile, the BSE Sensex was up 99.52 points, or 0.36%, to 27,775.56.
On BSE, so far 1.6 lakh shares were traded in the counter, compared with an average volume of 2.63 lakh shares in the past one quarter.
The stock hit a high of Rs 47.40 and a low of Rs 43.25 so far during the day. The stock had hit a 52-week high of Rs 108.75 on 22 May 2014. The stock had hit a 52-week low of Rs 39 on 27 March 2015.
The stock had underperformed the market over the past one month till 21 April 2015, falling 5.12% compared with 2.07% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 18.6% as against Sensex's 4.2% decline.
The small-cap company has an equity capital of Rs 98.12 crore. Face value per share is Rs 10.
Gitanjali Gems announced that with a view to rationalize the existing group structure and create synergy of operations, Gitanjali group is presently undertaking consolidation exercise at group level for enabling restructuring of Group's business in a manner that will enable operating of its sourcing, manufacturing, distribution, exporting and retailing arms of the Group in the most beneficial manner by way of reduction in costs and improvement in cash flows. The resultant strategic business model which may help unlocking value in future, company said.
The company in its meeting of Board of Directors held yesterday, 21 April 2015, approved the schemes of amalgamation of group companies namely, merger of Asmi Jewellery India and Spectrum Jewellery with Nakshatra Brands. All the three entities mentioned in the scheme are step down subsidiaries of the company. The board also approved the merger of Gitanjali Jewellery Retail and Gitanjali Lifestyle with GILI India. Gitanjali Jewellery Retail and Gitanjali Lifestyle are the wholly owned subsidiaries of the company, whereas Gili India is the step down subsidiary of the company.
Gitanjali Gems also said that the board of directors of the company at its meeting held yesterday, 21 April 2015, inter alia, has considered and approved the scheme of amalgamation of Gitanjali Exports Corporation (GECL), a wholly owned subsidiary with the company.
Gitanjali Gems' consolidated net profit rose 90.3% to Rs 96.02 crore on 30.6% rise in total income to Rs 3604.69 crore in Q3 December 2014 over Q3 December 2013.
Gitanjali Group was founded in 1966 as a single company cutting and polishing diamonds for the jewellery trade at Surat, Gujarat.
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