This investment by the FII, has increased the share price in the past two months by nearly Rs 100, or 50%. With the fresh acquisitions, total FII holding in Gitanjali is likely to have gone up from 10.7% as on June 30.
Gitanjali Gems has recorded a 56% rise in net profit at Rs 32.8 crore and a hike in net sales by 31% to Rs 654 crore during the quarter ended June 2007. It is in the process of setting up a special economic zone (SEZ) in Hyderabad and has acquired permissions for two SEZs in Aurangabad and Nagpur.
On September 3, Morgan Stanley made the biggest block deal of purchasing 10 lakh shares at Rs 298, valuing to Rs 30 crore. “FIIs have been buying from the open market, but the promoters have not sold any stake in the company,†said Gitanjali Gems finance director GK Nair
Citigroup, Morgan Stanley, Goldman Sachs and BSMA collectively picked up a 7% equity in Gitanjali Gems, through secondary market purchases of 44.25 lakh shares valued at Rs 114 crore. Each of the four FIIs has invested in separate block deals which ranged between Rs 208 and Rs 298 on BSE and NSE.
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