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Tara Jewels IPO Subscribed 1.88 Times
Nov 23, 2012 6:56 AM
By Dilipp S Nag
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RAPAPORT... Jewelry manufacturer and exporter Tara Jewels Ltd.’s initial public offering (IPO) has been subscribed to 1.88 times, according to data from the stock exchanges on Friday.
The price band of the issue, which closed today, was fixed at INR 225 to INR 230 per equity share. The IPO received bids for around 12.8 million shares as of 5:00 p.m. IST against the issue size of only 6.8 million shares, the data showed.
The IPO size is about INR 1.80 billion ($32.6 million), around INR 1.1 billion of which Tara is raising through new issue of equity shares, while its major shareholder Fabrikant H.K. Trading Ltd. is selling its stake in the company valued at INR 700 million. The company has already allotted shares worth about INR 266.5 million to two anchor investors.
Tara had earlier allotted shares worth about INR 405 million by way of the pre-IPO placement to Crystalon Finanz AG, an affiliate of Daniel Swarovski company.
The Mumbai-based company’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 is located in Panyu, China, with the other three in Mumbai.
The company launched its retail operations in October 2008 in India and currently operates 30 stores under the Tara Jewellers brand. It plans to utilize the IPO funds to open 20 new stores in north and the central parts of the country and for the payment of debt to the bank, which totals about INR 500 million.
Tara supplies studded jewelry to chains, including Christ Uhrean & Schmuck and retailer Walmart. 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 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, ipo, Jewelry, retail, Tara Jewellers, Tara Jewels
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