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Tara Jewels IPO Opens on Nov 21

Nov 19, 2012 7:46 AM   By Dilipp S Nag
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RAPAPORT... Jewelry manufacturer and retailer Tara Jewels Ltd.’s INR 2.20 billion ($39 million) initial public offering (IPO) of equity shares will hit the capital market on November 21, 2012. The company has fixed the price band at INR 225 to INR 230 per equity share for the issue.

“The total IPO size is INR 2.20 billion, of which INR 700 million is offered for sale and the balance will go to the company,” said Rajeev Sheth, the chairman and managing director of Tara Jewels. “The company will utilize the funds to open 20 new stores and for the payment of debt to the bank, which is about INR 500 million.”

Tara’s major shareholder Fabrikant H.K. Trading Ltd. is selling its stake in the company valued at INR 700 million. The company has allotted shares worth about INR 405 million by way of the pre-IPO placement to Crystalon Finanz AG, an affiliate of Daniel Swarovski company. Tara has allotted 1.8 million shares at INR 225 per share to Crystalon, brokerage ENAM Securities stated.

The issue will close on November 23. The minimum bid lot is 50 equity shares and multiples of the same share total.

Tara’s operations include manufacturing, exporting and retailing jewelry. Its products include gold, platinum and silver jewelry with or without studded precious and semi-precious stones. The company has four manufacturing units, one of which one  located in Panyu, China with the other three based in Mumbai.

The Mumbai-based company launched its retail operations in October 2008 and currently, it operates 30 stores under the Tara Jewellers brand. Sheth said that the company plans to open retail stores in north and the central parts of India. It is also looking at joint ventures with designer boutiques to enter the high-end retail jewelry segment.

Exports accounts for about 80 percent of its total sales with its main markets being the U.S., Australia, China, Canada, European Union, South Africa, the United Arab Emirates and the U.K. The company supplies studded jewelry to chains including Christ Uhrean & Schmuck and retailer Walmart.

The company has proposed to list its equity shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The book-running lead managers for the issue are Enam Securities Private Ltd. and ICICI Securities Ltd.

* Note: All data was published in rupee. Any references to U.S. dollar amounts were made according to exchange-rate conversions by Rapaport News.
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Tags: Dilipp S Nag, gold, India, Jewelry, Rajeev Sheth, retail, Tara Jewellers, Tara Jewels
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