Tara Jewels IPO to hit markets on November 21

An initial public offering (IPO) of equity shares by jewellery manufacturer, retailer and exporter, Tara Jewels is slated to open on the capital markets on November 21, 2012. The IPO is worth INR 2.20 billion, with a price band of INR 225 to INR 230 per equity share, reports say. Subscription to the IPO will close on November 23.

The IPO comprises of offer for sale of INR 700 million worth of shares by Fabrikant H K Trading, while the balance will go to the company, reports say. Fabrikant H.K. Trading Ltd. which is Tara Jewels’ major shareholder is selling its stake in the company valued at INR 700 million.

The company intends to utilize its funds in retail expansion activities, repaying debts and working capital needs, reports suggest.

Enam Securities Private and ICICI Securities are book running lead managers to the issue, and Link Intime India is the registrar to the issue. Tara Jewels’ retail operations are run under the identity of 'Tara Jewellers' stores, with a current base of 30 such outlets in India.

The equity shares are proposed to be listed on the BSE and National Stock Exchange of India, reports say.