Home >Market >Stock-market-news >Gitanjali Gems says Nakshatra World unit planning Rs650 crore IPO

Mumbai: Jewellery firm Gitanjali Gems Ltd said that its unit Nakshatra World Ltd will raise funds through an initial public offering (IPO).

Nakshatra World, earlier known as Gitanjali Brands Ltd, plans to raise as much as Rs650 crore through the IPO, Gitanjali Gems told the stock exchanges on Wednesday.

The proposed IPO is subject to requisite approvals, market conditions and other relevant considerations, the company said.

Gitanjali Gems did not say when it would file the draft red herring prospectus with markets regulator Securities and Exchange Board of India.

The IPO plan comes at a time when the Indian primary market has seen robust activity over the past 12-24 months.

As of 30 November, 25 companies had raised Rs25,163.3 crore through the IPO route, while 21 companies raised around Rs13,614 crore in the previous year, according to data compiled by Prime Database, a primary market tracker.

Several consumer-facing companies have taken advantage of the strong momentum for IPOs to either raise funds for growth or provide an exit route to their investors.

Consumer-facing companies such as Coffee Day Enterprises Ltd, Manpasand Beverages Ltd, Sheela Foam Ltd, Varun Beverages Ltd, Parag Milk Foods Ltd, Quick Heal Technologies Ltd and Adlabs Entertainment Ltd have tapped the primary markets in the past two years.

Shares of Gitanjali Gems fell 0.63% to Rs62.65 on BSE, while the benchmark Sensex declined 0.36% to 26,602.84 points. The announcement was made after market hours.

Gitanjali Gems owns and distributes several renowned jewellery brands such as Gili, Nakshatra, Asmi, Sangini, Nizam and Parineeta.

Gitanjali’s network of own stores, shop-in-shops and franchise outlets spans across 200 cities and 3,000 points of sale, according to the company’s latest annual report.

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