New Delhi: Gitanjali Gems’ arm Nakshatra World has received capital markets regulator Sebi’s go-ahead to float an initial public offering.

The company had filed draft red herring prospectus (DRHP) with Sebi in March and obtained its ‘observations’ on June 9, which are necessary for launching any public offer, as per the latest update.

Going by the draft papers, the IPO comprises 1.8 crore equity shares of Nakshatra World, which offers jewellery under the brands Nakshatra, Gili, Asmi, Sangini, Diya, Parineeta and Rivaaz.

While the exact size of the IPO could not be ascertained, Gitanjali Gems had in December last year announced that Nakshatra World would raise up to 650 crore through an initial public offer (IPO). Proceeds of the issue will be utilised towards funding working capital requirements and other general corporate purposes.

The public issue is being managed by IDBI Capital Markets & Securities and Elara Capital (India) Pvt Ltd. The equity shares are proposed to be listed on BSE and National Stock Exchange (NSE).

Nakshatra will join other listed jewellery retailers such as PC Jeweller, Tribhovandas Bhimji Zaveri, Tara Jewels, Titan Company, Rajesh Exports and Shree Ganesh Jewellery House. As of September 30, 2016, the firm had eight manufacturing units across Mumbai, Jaipur, Surat and Hyderabad.

Its distribution network is spread across 290 cities and towns in India, with more than 1,644 points of sale. In overseas markets, the company has 890 points of sale located across China, Singapore, Thailand, Malaysia, Indonesia, UAE, Saudi Arabia and Qatar.