The IPO of jewellery maker and exporter Tara Jewels received a lukewarm response from investors on the second day of issue today with getting subscription for just 16% of total shares on offer.
The initial public offer attracted bids for about 10.99 lakh shares against 68.18 lakh shares on offer by 1700 hrs, as per information available with the stock exchanges.
The three day issue, which would close tomorrow, has received 10% subscription from retail investors category.
The company said the issue comprises fresh equity shares worth Rs 197.5 crore and an offer for sale (OFS) of Rs 70 crore worth of shares by Fabrikant H K Trading.
The company had alloted shares worth over Rs 26 crore to two anchor investors yesterday. It had fixed a price band of Rs 225 to Rs 230 per share.
The company plans to use funds to expand its retail presence as well as for payment of loans.
It conducts jewellery retail operations in the domestic market under the brand 'Tara Jewellers' and has 30 stores spread mainly in west, central and the north.
Enam Securities Private and ICICI Securities are book running lead managers to the issue, while Link Intime India is the registrar to the issue.
The equity shares are proposed to be listed on the BSE and NSE.
