GITANJALI Gems which currently retails brands like Asmi, Nakshatra, Ddamas, Gili and Ginatti through its 620 outlets across India is in talks to acquire two jewelry retail chains in the United States. The size of the acquisitions should be $100-120 million and the deal is expected to be sealed by October 2006. The company intends to finance the acquisitions through internal accruals and debt. The companys stock has risen by 21 percent, or Rs 23, to Rs 136 in a week, after having only made its debut on the stock exchange in March at Rs 215 against its issue price of Rs 195. The acquisitions will allow Gitanjali to sell its brands in the United States. The company sources rough diamonds from , the marketing arm of De Beers.%%Gitanjali cuts and polishes diamonds for sales in the local and international markets. Recently, Gitanjali acquired Desire Lifestyle, which is engaged in the business of retailing jewelry. The strategy of forward integration is expected to help the company improve its margins, which are generally low in this business