Moneycontrol Bureau
Gitanjali Gems shares rallied 10 percent intraday Thursday after its subsidiary has decided to raise funds through initial public offering.
"Nakshatra World, formerly known as Gitanjali Brands, has decided to raise funds through an initial public offer of equity shares for an overall amount of not exceeding Rs 650 crore, subject to requisite statutory and other approvals, procedures, market conditions and other relevant considerations," the jewellery maker said in its filing on Wednesday.
The board of directors of the company has also approved the proposal of public offering of equity shares of Nakshatra World and dilution of its stake consequent to initial public offer.
Gitanjai said the draft red herring prospectus will be filed by its subsidiary with the Securities and Exchange Board of India as and when it is approved by the board of Nakshatra World.
In addition, the Mumbai-based branded jewellery retailer has reported a whopping 50.3 percent year-on-year growth in consolidated profit at Rs 47.50 crore in Q2FY17, driven by lower finance cost and higher other income.
Revenue during the quarter increased 14.7 percent to Rs 3,964.80 crore while EBITDA grew by 5.5 percent to Rs 201.40 crore but margin contracted 110 basis points to 5.1 percent on yearly basis.
At 11:06 hours IST, the stock was quoting at Rs 66.55, up Rs 3.90, or 6.23 percent amid high volumes on the BSE.Posted by Sunil Shankar Matkar
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