Shares of Gitanjali Gems rose nearly 4 per cent today after its arm Nakshatra World received markets regulator Sebi’s go-ahead to float an initial public offering. The stock jumped 3.74 per cent to settle at Rs 68 on BSE. During the day, it went up 7.93 per cent to Rs 70.75. At NSE, shares of the company rose 3.42 per cent to end at Rs 67.95. In terms of volume, 2.71 lakh shares of the company were traded on BSE and over 13 lakh shares changed hands at NSE during the day.
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 Rs 650 crore through an IPO.