India’s capital markets regulator, Securities and Exchange Board of India (SEBI) yesterday granted approval to the proposed initial public offering (IPO) planned by Gitanjali Gems for its subsidiary Nakshatra World. The Draft Red Herring Prospectus for the proposed IPO had been filed in March 2017 and obtained the required ‘observations’ on June 9.

The Company proposes to issue of 1.8 crore equity shares and raise up to Rs 400 crore through the IPO. The Nakshatra World subsidiary of Gitanjali offers jewellery under the brands Nakshatra, Gili, Asmi, Sangini, Diya, Parineeta and Rivaaz.

IDBI Capital Ltd and Elara Capital (India) Pvt. Ltd are financial advisers to Nakshatra World’s IPO. The shares will be listed on BSE and National Stock Exchange (NSE).

According to media reports, the proceeds of the issue will be utilised towards funding working capital requirements and other general corporate purposes. As of September 30, 2016, Nakshatra World had eight manufacturing units across Mumbai, Jaipur, Surat and Hyderabad and a distribution network that spans 290 cities and towns in India, with more than 1,644 points of sale. The international network includes 890 points of sale located across China, Singapore, Thailand, Malaysia, Indonesia, UAE, Saudi Arabia and Qatar.

Analysts said it would be the first IPO by a jewellery company in India since 2012.