Board of Gitanjali Gems approves schemes of amalgamation

At meeting held on 21 April 2015

Gitanjali Gems announced that with a view to rationalize the existing group structure and create synergy of operations, Gitanjali group is presently undertaking consolidation exercise at group level for enabling restructuring of Group's business in a manner that will enable 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. The resultant strategic business model which may help unlocking value in future.

The Company, in its meeting of Board of Directors held on 21 April 2015, approved the schemes of amalgamation of following group companies

1. Merger of Asmi Jewellery India and Spectrum Jewellery with Nakshatra Brands. All the three entities mentioned in the scheme are step down subsidiaries of the Company.

2. Merger of Gitanjali Jewellery Retail and Gitanjali Lifestyle Limited with GILI India. Gitanjali Jewellery Retail and Gitanjali Lifestyle are the wholly owned subsidiaries of the Company, whereas Gili India is the step down subsidiary of the Company.

The Scheme is subject to sanction of the Hon'ble High Courts and all other statutory approvals as may be required under sections 391 to 394 of the Companies Act, 1956.

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