Gitanjali Gems, a jewellery maker, has acquired a stake in a group company Diamlink Inc. It announced to the Bombay Stock Exchange (BSE) that Gitanjali USA Inc, a wholly owned subsidiary, has acquired a 51% stake in New York-based Diamlink. The company has not shared details about the subsidiary’s turnover or the consideration paid.
Diamlink sells diamond and diamond studded jewellery. Here is some information from Gitanjali’s draft prospectus (even if it is dated). In 2004, Diamlink Inc had an equity capital of $5.5mn, income of $55mn and profit after tax of $0.27mn. Its low margins indicate that it is a trading company.
Gitanjali’s letter of offer also mentions that Nehal Modi and Neena Sheth are on the board of directors of the company. Digico Holdings is shown as the sole shareholder of the company, which is also one of the promoter group companies. More information about the Digico Group.