Gitanjali Gems Plans to Raise Rs 175 Crore for Expansion

Gitanjali Gems Ltd today said it plans to raise up to Rs 175 crore through issue of warrants for expansion of diamond and jewellery business globally.

In a BSE filing, the company said the Board of Directors has decided to seek approval of shareholders through postal ballot "to raise funds up to Rs 175 crore by issue of convertible warrants to persons other than promoters by way of preferential allotment."

"The funds will be used for expansion of our diamond and jewellery business across the world," the company's managing director Mehul Choksi told PTI.

Gitanjali Gems will also seek shareholders' approval for borrowing up to a limit of Rs 10,000 crore and to make loans or give any gauranteee or provide any security up to a limit not exceeding Rs 7,500 crore under the Company's Act.

That apart, an approval will be sought for creation of charge/hypothecation/mortgage of movable and immovable properties upto a limit not exceeding Rs 10,000 crores, the filing said.

Gitanjali has brands such as Nakshatra, Asmi, Gilli and D'Damas.

The company has more than 4,000 points of sale in India.

It also has stores in the United States, China, Japan along with a presence in Europe and West Asia.