Gitanjali Gems raises US$ 110 mn through FCCBs

Mumbai, Nov 27 (UNI) Gitanjali Gems Ltd, a Rs 2500 crore gems and jewellery retail Company, today announced that it has successfully raised US$ 110 million(Rupee equivalent of 495 crore approximately), through issue of Foreign Currency Convertible Bonds(FCCBs).

In effect, the initial 'conversion price' works out to Rs 275 per share accounting for a 28 per cent premium to the reference price on the BSE on November 24, 2006.

A company's press release issued here said that 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.

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

The proceeds of the FCCB issue will be used toward some of the identified acquisitions and other capital expenditure that have been planned.

''The successful FCCB issue reflects investors' confidence in Gitanjali Gems' strategy and its unique position of India's largest fully integrated Gems and Jewellery company from state-of-the-art manufacturing facilities to owning India's leading jewellery brands in Gili, D'Damas, Nakshatra, Asmi and Sangini,'' said Mr Mehul Choksi, Gitanjali Group Chairman, while commenting on the FCCB issue.

UNI SN PM AW1956