Gitanjali Gems raises $110 mln to fund acquisitions

New Delhi, Nov 27 (UNI) The Rs 2,500-crore Gitanjali Gems today announced it has raised 110 million dollars (about Rs 495 crore) through Foreign Currency Convertible Bonds (FCCBs) to fund acquisitions and capital expenditure.

The initial conversion price, determined at Rs 275 per share, represents a 28 per cent premium to the reference price, on the BSE on November 24, 2006, the company said in statement here.

''The proceeds of the FCCB issue will be used for the identified acquisitions and other capital expenditure that we have planned,'' said Gitanjali Group Chairman Mehul Choksi.

The FCCBs will mature on November 25, 2011. The underlying equity shares on conversion will be listed on the BSE and NSE. The FCCBs will be listed on the Singapore Stock Exchange.

The successful FCCB issue reflects investors' confidence in Gitanjali Gems' strategy and its unique position as India's fully integrated gems and jewellery company, Mr Choksi said.

Jefferies International Ltd acted as the Lead Manager for this offering. Atherstone Capital (Asia) Ltd and Keynote Corporate Services Ltd acted as the Indian advisors on the transaction on behalf of the company.

Gitanjali Gems has jewellery brands like Gili, D'Damas, Nakshatra, Asmi and Sangini under its belt.

Being a DTC sightholder, a diamond and jewellery manufacturer, the Group has positioned itself to manufacture and promote diamonds as well as studded jewellery at the retail level.

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