Gitanjali Gems arm Nakshatra World files IPO papers with SEBI

Nakshatra World, a subsidiary of Gitanjali Gems, has filed its draft red herring prospectus (DRHP) with the capital market regulator for initial public offering.

In a notification to the exchanges on Friday, the company informed about the filing of the prospectus to the Securities and Exchange Board of India (SEBI) as well as both the exchanges.

The company had in December 2016 outlined its plan to raise close to Rs 650 crore, subject to regulatory approvals.

The board of directors of the company had also approved the proposal of public offering of equity shares of Nakshatra World and dilution of its stake consequent to initial public offer.

Nakshatra World is a firm in the organised jewellery and luxury space in India. According to the company's website, it claims to have focus on manufacture and distribution of branded studded jewellery, gold jewellery and other jewellery products in India and overseas. It has eight manufacturing facilities that are located in Mumbai, Jaipur, Surat and Hyderabad.

Additionally, the distribution network is spread across 290 cities and towns in India, with more than 2,000 POS across distributors, shop-in-shops and stores.

Gitanjali Gems has seen slightly weak movements, falling over 13 percent in the past one month, while its 3-day fall was seen at 4 percent. On Friday, the stock closed 2.40 percent at Rs 63.35 on the BSE.