Meanwhile, the BSE Sensex was down 121.07 points, or 0.62%, to 19,270.79.
The stock opened at 242, a premium of 5.22% over the initial public offer (IPO) price of Rs 230. On BSE, 3.87 lakh shares were traded on the counter. The stock hit a high of Rs 244.90 and a low of Rs 232 so far during the day.
The IPO of jewellery manufacturer and exporter Tara Jewels received good response from investors. The IPO closed on 23 November 2012, after garnering total bids for 1.35 crore shares, as against 68.18 lakh shares on offer. The issue was subscribed 1.98 times.
The company had priced the IPO at the top end of the Rs 225-230 price band. The issue comprised of fresh issue of (Rs 10 face value) shares worth up to Rs 109.50 crore and an offer for sale of shares worth up to Rs 70 crore by Fabrikant H.K. Trading.
The non-institutional investors category received good response. It was subcribed 3.10 times, with total bids for 36.68 lakh shares as against 11.84 lakh shares on offer. The retail investors category was subscribed 2.05 times, with total bids for 56.73 lakh shares as against 27.64 lakh shares on offer. The qualified institutional buyers (QIBs) category was subscribed 1.49 times. Bids in this category totaled to 41.46 lakh shares compared with 27.90 lakh shares on offer.
Tara Jewels, on 20 November 2012, finalised allocation of 11.58 lakh equity shares to two anchor investors at Rs 230 per share, the top end of the Rs 225-230 IPO price band. Among anchor investors, Universities Superannuation Scheme (USSL) as trustee of Universities Superannuation Scheme and DB International Asia were allotted 4.35 lakh shares and 7.23 lakh shares of the company, respectively. The company garnered Rs 26.65 crore through the allocation to anchor investors.
Tara Jewels plans to utilise the IPO proceeds to meet the expenses of establishing retail stores and for repayment or prepayment of loans.
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 north. The firm intends to launch 20 project stores across India by 31 March 2013.
The company has four manufacturing units, three in Mumbai and one in China. The company primarily exports to Australia, China, Canada, European Union, South Africa, UAE, UK, and US. Going forward, the company will explore export opportunities in South and Central America.
Tara Jewels' consolidated net profit jumped 33% to Rs 54.12 crore on 22% growth in net sales to Rs 1399.09 crore in the year ended 31 March 2012 over the year ended 31 March 2011.
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