Tara Jewels IPO to open on Nov 21
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Jewellery manufacturer and exporter Tara Jewels said it had fixed the price band for its IPO at Rs 225-230 a share, which will open for subscription on November 21.
The issue, which will close on November 23, comprises fresh equity shares worth Rs 197.5 crore and an offer for sale of Rs 70 crore worth of shares by Fabrikant H K Trading, the Mumbai-based company's Chairman and Managing Director Rajeev Vasant Sheth told reporters here.
Of the total funds raised from the proposed initial public offering (IPO), Rs 70 crore will be for offer for sale to Fabrikant H K Trading, the balance will be used for funding the retail expansion in the country, repay debt and working capital, he said.
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 the north.
"We are planning to an additional 20 retail stores by the end of this financial year mostly in the north and the central region. These stores will be in tier I, II, III and IV cities catering to the middle class," he added.
The company primarily exports to Australia, China, Canada, European Union, South Africa, UAE, the UK, and US.
Going forward, the company will explore export opportunities in South and Central America, he said.
The company has four manufacturing units, three in Mumbai and one in China, he said.
Net profit of the company rose 33 per cent year-on-year to Rs 54.13 crore and total revenue increased 22.5 per cent to Rs 1,401.05 crore in FY'12.
Sheth, who is also the promoter, holds 73.15 per cent stake in the company while Fabrikant HK Trading and Crystalon Finanz AG hold 16.36 per cent and 9.09 per cent stake, respectively.
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