Gitanjali Gems slips over 3% as promoters reject board’s 30% dividend plan

NEW DELHI: Gitanjali Gems Ltd slipped as much as 3.1 per cent in morning trade on Thursday, after the promoters of the promoters of troubled branded jewellery maker made a dramatic U-turn at the firm's annual general meeting this week, stepping into defeat their own board's decision declaring 30% dividend for all shareholders.

At 09:45 a.m.; Gitanjali Gems recouped some of the losses and was trading 0.4 per cent lower at Rs 54.40. The stock is now trading close to its 52-week low of Rs 50.45. The stock is down nearly 90% since the beginning of the year.

The promoter family, led by Mehul Choksi and others representing 3.64 crore shares, or 55% of Gitanjali's capital, voted 100% against the resolution to declare dividend even as institutional shareholders voted in favour, ET reported.

The retail shareholders, surprisingly, supported the promoters by voting against the resolution. Gitanjali's institutional shareholders include Macquarie Securiites, Morgan Stanley and Credit Suisse.

The annual general meeting was held in Mumbai on September 30 and this is the first time Gitanjali is skipping dividend since listing in 2006. The dividend resolution was passed by the board of directors of Gitanjali on May 28.