Tara Jewels' IPO subscribed only 4% on Day 1

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Jewellery manufacturer and exporter Tara Jewels' initial public offering (IPO) has received tepid response from investors on the very first day of its opening today and was subscribed only 4%.

The IPO, which will close on November 23, attracted bids for about 2.77 lakh shares against 68.18 lakh shares on offer by 1700 hrs, as per information available with the stock exchanges.

The company said the issue comprises fresh equity shares worth Rs 197.5 crore and an offer for sale of Rs 70 crore worth of shares by Fabrikant H K Trading.

Ahead of the IPO, 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 from suburban areas of metro cities to mini metros and other cities possessing higher concentration of mid-income segment and pre-payment of loan.

It 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 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.