Tara Jewels IPO to hit markets on November 21, 2012

Tara Jewels Limited (the "Company"), is proposing a public issue of equity shares of face value of Rs. 10 each ("Equity Shares") for cash at a price band of Rs.225 to Rs.230 per Equity Share, aggregating up to Rs. 1,795 million (the "Issue"). The issue comprises a fresh issue of Equity Shares by the Company aggregating up to Rs. 1,095 million ("Fresh Issue") and an offer for sale by Fabrikant H.K. Trading Limited ("Selling Shareholder") aggregating up to Rs. 700 million ("Offer For Sale").

The Issue includes a reservation of up to 1% of the Issue size for the eligible employees (the "Employee Reservation Portion"). The Issue less the Employee Reservation Portion is referred to as the "Net Issue".

Tara Jewels is an integrated player in the jewellery industry with experience ranging from designing to retailing. The Company's business can be divided into three operations namely, manufacturing, exporting and retailing with the portfolio of products includes gold, platinum, honeydium, pristinium and silver jewellery with or without studded precious and semi-precious stones. Tara Jewels conducts jewellery retail operations under the brand "Tara Jewellers". The company entered jewellery retailing in India in October 2008 with the launch of their Existing Store at Andheri, Mumbai and currently it operate 30 Stores.

The company primarily export to Australia, China, Canada, European Union, South Africa, UAE, UK and USA and 12 countries in European Union including Austria, Germany and Switzerland. The company has four manufacturing units, of which one is located in Panyu, China. The other three units are located in Mumbai, India out of which two units are situated in SEEPZ and one in MIDC.

The Equity Shares are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited. Enam Securities Private Limited, ICICI Securities Limited are the Book Running Lead Managers to the Issue while Link Intime India Private Limited is the Registrar to the Issue.

The Issue Opens on Wednesday, November 21st, 2012 and closes on Friday, November 23rd, 2012.

CARE has assigned IPO Grading of CARE IPO Grade 3.

Source : Equity Bulls

Keywords