Mumbai: Shares of Gitanjali Gems Wednesday surged over 9 percent after the company announced major restructuring of its business to create better synergy within group companies, bring down costs and improve cash flows for "unlocking value in future".
The stock soared 9.41 percent to settle at Rs 47.65 on the BSE. During the day, it jumped 11.82 percent to Rs 48.70.
On the NSE, the scrip zoomed 8.59 percent to end at Rs 47.40.
In terms of volume, 10.43 lakh shares of the firm changed hands at the BSE and over 26 lakh shares were traded at the NSE during the day.
The company is consolidating its various subsidiaries which are into jewellery retail under different brands like Gili and Asmi besides exports.
In a BSE filing, Gitanjali Gems yesterday informed that its Board has approved 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 had said.
This is being done to enable restructuring of Group's business in a manner that enables 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.
"The resultant strategic business model which may help unlocking value in future," it added.
