Shares of Gitanjali Gems surged nearly 9 per cent to hit intra-day high of Rs 47.40 after the company said that it plans to restructure its business.
The company post the market hours on Tuesday said that it will consolidate its various subsidiaries which are into jewellery retail under different brands like Gili and Asmi besides exports.
Gitanjali Gems in a filing to the BSE said its board has approved the merger of its arm Gitanjali Exports Corporation Limited (GECL) with itself.
"With a view to rationalise the existing group structure and create synergy of operations, Gitanjali group is presently undertaking consolidation exercise at group level," the company said.
Gitanjali group is presently undertaking consolidation exercise at group level for enabling restructuring of group's business in a manner that will enable operating of it sourcing, manufacturing, distribution, exporting and retailing arms of the Group in the most beneficial manner by way of reduction in costs and improvement in cash flows, it said in a filing to the Bombay Stock Exchange.
At 10:20 a.m., the shares of Gitanjali Gems jumped 5.4 per cent to Rs 45.90. Trading volumes on the counter surged as 1.77 lakh shares changed hands on the BSE compared to average of 1.69 lakh shares traded daily in the past two weeks.
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