Gitanjali Gems up 10% on BSE amid equity dilution buzz

Gitanjali Gems up 10% on BSE amid equity dilution buzz

Mumbai: Shares of Gitanjali Gems soared by nearly 10% in early trade on the Bombay Stock Exchange (BSE) on Wednesday amid reports that the jewellery-maker plans to raise $100-150 million through the sale of an 8-10% stake to private investors.

According to media reports, the company is looking to restructure its jewellery brand holding company by divesting 8-10% 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% to an early high of Rs217.40 apiece on the Bombay Stock Exchange.

The scrip witnessed a similar surge on the National Stock Exchange (NSE) and was trading higher by Rs217.50, or 10.01%, vis-a-vis the previous close.

The upsurge was also bolstered by the company’s acquisition of a 90% 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 10:43 am today.