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Monday, November 26, 2012

Tara Jewels IPO subscribed 2 times

Gets bids for 1.35 crore shares 


The initial public offer (IPO) of jewellery manufacturer and exporter Tara Jewels was subscribed 1.98 times. The IPO garnered bids for 1.35 crore shares as against 68.18 lakh shares on offer. The IPO remained open for bidding between 21 and 23 November 2012.
Categorywise, non institutional investors portion was subscribed 3.10 times followed by qualified institutional buyers (1.49 times) and retail individual investors (2.05 times). 

The company had fixed the price band for the IPO at Rs 225-230 a share. The issue consisted of fresh issue of (Rs 10 face value) shares worth up to Rs 109.50 crore and an offer for sale of shares worth up to Rs 70 crore by Fabrikant H.K. Trading. 

Tara Jewels on Tuesday, 20 November 2012, finalised allocation of 11.58 lakh equity shares to two anchor investors at Rs 230 per share, the top end of the Rs 225-230 IPO price band. Among anchor investors, Universities Superannuation Scheme (USSL) as trustee of Universities Superannuation Scheme and DB International Asia were allotted 4.35 lakh shares and 7.23 lakh shares of the company, respectively. The company garnered Rs 26.65 crore through the allocation to anchor investors. 

Tara Jewels plans to utilise the IPO proceeds to meet the expenses of establishing retail stores and for repayment or prepayment of loans. 

The company conducts jewellery retail operations in the domestic market under the brand 'Tara Jewellers' and currently has 30 existing stores spread mainly in west, central and north. The firm intends to launch 20 project stores across India by 31 March 2013. 

The company has four manufacturing units, three in Mumbai and one in China. The company primarily exports to Australia, China, Canada, European Union, South Africa, UAE, UK, and US. Going forward, the company will explore export opportunities in South and Central America. 

Care rating agency had assigned IPO grading of three to the Tara Jewels IPO, which indicates average fundamentals. The IPO grading is assigned on a five-point scale from one to five with five being the best. 

Tara Jewels' consolidated net profit jumped 33% to Rs 54.12 crore on 22% growth in net sales to Rs 1399.09 crore in the year ended 31 March 2012 over the year ended 31 March 2011.
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