Tribhovandas Zaveri IPO subscribed 20% on Day 2

IPO, which closes tomorrow, attracts bids for 2.813 mn shares against 14.1 mn shares

The Rs 210-crore initial public offer (IPO) of jewellery retailer Tribhovandas Bhimji Zaveri's (TBZ) was subscribed 20% on the second day of the issue today.

The IPO, which closes tomorrow, attracted bids for over 2.813 million shares against 14.1 million shares on offer till 1700 hours.

The issue created demands worth Rs 35.45 crore.

The company has fixed the price band at Rs 120-126 per share for its IPO.

The issue size is 16.6 million equity shares of Rs 10 each (including anchor portion of 2.499 million equity shares).

TBZ plans to open nine new large format high street showrooms in eight cities during the 2012-13 fiscal. It already has 14 showrooms in 10 cities across five states.

As part of its strategy, the company plans to open nine showrooms, one each in Aurangabad, Gandhidham, Hyderabad, Nagpur, Vadodara, Valsad, Visakhapatnam and two in Kolkata, for which it intends to deploy Rs 19.19 crore in this fiscal.

That apart, it requires additional working capital for financing the inventory in the new showrooms, for which it plans to deploy Rs 1,60.44 crore.

IDFC Capital and Avendus are book running lead managers for the issue.

The company manufactures and retails gold, diamond and platinum jewellery.