Tara Jewels hits lower circuit, slips below issue price

There are pending sell orders for 177,750 shares on the BSE and NSE

Tara Jewels declined nearly 5% for the second day in a row, and was locked in lower circuit at Rs 219 on the BSE, with no buyers on the counter.

The stock of the Mumbai-based jewellery manufacturer and retailer got listed at Rs 242 on Thursday, is currently trading below its issue price of Rs 230 per share. A combined around 8,000 shares have already changed hands on the counter and there are pending sell orders for 177,750 shares on both the exchanges.

Tara Jewels has listed and admitted to dealings on the Exchange in the list of ‘T’ group of securities and the scrip will be in Trade-for-Trade (T2T) segment for 10 trading days.

Under the T2T segment, only delivery-based trading can be done and 100% value at risk margin is collected by the exchanges. If a scrip is shifted for settlement on T2T basis, selling/ buying of shares in that scrip results into giving/ taking delivery of shares at the gross level and no intra day netting off/ square off facility is permitted.

The company had raised Rs 180 crore through the initial public offers (IPO). The company proposed to use the net proceeds of issue for expenses of establishing retail stores and payment of loans.