Gitanjali Gems soars 8% as subsidiary files DRHP

Shares of Gitanjali Gems jumped over 8 percent intraday after the company’s arm filed its draft red herring prospectus for an initial public offering (IPO).

Nakshatra World, a wholly-owned subsidiary of the firm, filed the DRHP with the Securities and Exchange Board of India (SEBI) and the stock 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 the IPO.

The stock rose 3 percent in the past one month, while its 3-day gain also stood at 2.2 percent. At 10:30 hrs, the stock was quoting at Rs 67.15, up Rs 3.80, or 6.00 percent, on the BSE. It has touched an intraday high of Rs 68.65 and an intraday low of Rs 66.25.