Sebi gives approval to Tara Jewels to launch Rs 200 cr IPO

Market regulator Sebi has given its approval to studded jewellery exporter Tara Jewels to launch an initial public offer (IPO) for raising up to Rs 200 crore.

According to Sebi data, the approval was given to the company to tap the capital market on January 4.

The company had filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for IPO in September, for which Enam Securities is the sole book running lead manager.

According to draft prospectus, the company expects to raise up to Rs 200 crore through the share sale.

The company is a recent entrant to country's organised jewellery retail industry. The IPO reflects the upbeat market sentiment, whereas more and more firms are lining up to cash in the buoyant stock market.

Tara Jewels caters to retailers across the US, Europe (16 countries including the UK, Germany and Italy), Australia, China, Japan, South Africa and Canada.

The company has four manufacturing facilities, including one in China. It employs 1,500 white and blue collared staff across four continents. It had an aggregate production of 2,562.91 kg in 2009-10.

The year 2010 had seen 70 public issues, that is, 62 IPOs and 8 FPOs. The funds raised through public issues totalled about Rs 71,114 crore. A major chunk of the amount raised through share sales -- that is, Rs 49,946 crore -- came from the government divesting its stake in public sector companies.