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Thursday, 23 September 2010 |
Gitanjali Gems, which owns brands such as Nakshatra and Ddamas, is going in for restructuring. The
company has roped in KPMG to help in restructuring its businesses. Believing that its intrinsic value is much more than the existing market cap, the board has decided to explore the potential merger of subsidiaries, demerger and other forms of restructuring, or acquisition, or spin-offs with the ultimate aim of enhancing and unlocking shareholder value. Gitanjali has five major businesses -- manufacturing of diamond and jewelry, brands, retail stores, construction and international retail stores. The restructuring initiative is expected to be completed over the next year.
The jewelry retailer was founded as a single company cutting and polishing diamonds for the jewelry trade in 1966. It was the first major diamond and jewelry house to be launched and run by modern entrepreneurs rather than dynastic jewelers and has the distinction of having produced the world’s smallest heart-shaped diamond and developing some 25 patented facet patterns. Gitanjali operates primarily in the diamond segment; its gold offerings are few. Its retail reach spans over 3,000 outlets, of which about 500 are EBOs. Gitanjali Gems’ market cap is Rs 1,782 crores. The company has retail brands worth Rs 5,000 crores and real estate or land worth Rs 1,500 crores.
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