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Thangamayil Jewellery IPO opens on January 27th

Announcement  |  Corporate 

A leading Jewellery retailer in Madurai proposes to enter the capital markets with an IPO of equity shares aggregating to Rs 2875.25 lacs on January 27, 2010 at a price band of Rs 70 – Rs 75.

The issue would constitute 29.35% of the post issue paid up capital at the lower end of the price band and 27.94 % of the post issue paid up capital at the upper end of the price band.

The company is eligible to come out with an issue under the SEBI (ICDR) Regulations but is making a voluntary book building issue wherein upto 50% of the Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only.

The company currently has showrooms at Madurai, Ramanathapuram, Rajapalayam, Kariakudi and Dindigul and intends to use the proceeds of the issue to expand existing business by establishing retail outlets at Tuticorin, Theni, Nagercoil, Thirunelveli, Kovilpatti and Sivakasi and to renovate the existing outlet at Madurai.

The Company has achieved a turnover of Rs 247 crores with the PAT of Rs 7.49 crores for the financial year ended March 2009 and for six months period ended September 2009 the Company has achieved a turnover of Rs 209 crores with the PAT of Rs 7.97 crores.

Keynote Corporate Services Ltd. is the Sole Book Running Lead Manager to the issue and S.K.D.C. Consultants Ltd. is the Registrar to the issue.

About Thangamayil Jewellery Ltd.:
Thangamayil Jewelley ltd. is one of the leading jewellery retailers in Madurai. The Company trades in Gold Jewellery, Diamond and Platinum jewels. Variety of ornaments like Gold chains, Necklaces, Bangles, Ear Studs, Nose Rings, Waist Belts, Kasu Malai, Finger Rings, Bracelets and other items fitting to the taste of the customers are being sold by the Company. The ornaments are also made to order as per specific requirements by the customer and the same are manufactured at the company’s unit near Madurai. Further gold Jewels are bought readymade from various dealers situated in the states of Andhra Pradesh, Gujarat, Kerala and West Bengal, according to the designs, models and current fashions and demand in the market for sale at the counters.

Thangamayil introduced the Hallmarking practice for the first time in Madurai and over the time has increased the percentage of jewellery hallmarked to greater than 95% of the jewellery sold through its outlet.

Thangamayil is also one of the oldest retailers having established customer base of over 1,00,000 customers. Prior to the formation of Thangamayil Jewellery Private Limited in the year 2000 the business was carried on by the promoters of the company in the name of Balu Jewellery (Partnership concern). Since 1984 the company is in the business of manufacturing and trading of jewellery.

First Published: Wed, January 20 2010. 19:46 IST
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