Price band fixed at Rs 225-230
Tara Jewels which operates in three segments — retail, export and manufacturing, announced its Rs 180-crore initial public offering on Monday. The price band is fixed at Rs 225-230 a share.
The issue opens on November 21 and closes on November 23. The issue consists of fresh issue of (Rs 10 face value) shares worth up to Rs 109.5 crore and an offer for sale of shares worth up to Rs 70 crore by Fabrikant HK Trading Ltd.
Tara Jewels plans to utilise the IPO proceeds to meet the expenses of establishing retail stores and for repayment or prepayment of loans. “We plan to set up 20 new stores by March 2013. These will be mostly in the north and central India,” said Rajeev Sheth, Chairman and Managing Director, Tara Jewels.
Post the issue, the promoters will hold about 60 per cent and Farbrikant will hold about 0.5 per cent. Tara Jewels operates in three segments — retail, export and manufacturing.
Plans 18 new stores
About Rs 66.5 crore million will be deployed to set up these stores in 18 cities. The average size of a store is proposed to be approximately 1,000 square feet. It currently operates about 30 stores across the country. Tara Jewels also plans to expand its global footprint and enter new markets of South and Central America.
They also plan to utilise Rs 50 crore from the net proceeds to repay or prepay Rs 30 crore to the SBI and Rs 20 crore to ICICI Bank.
The issue has been assigned the “CARE IPO Grade 3” by ICRA.
Enam Securities and ICICI Securities are the Book Running Lead Managers to the issue.