Tara Jewels’ Rs.179.5-crore IPO first in five months
Tara Jewels is engaged in manufacturing, exporting and retailing of diamond jewellery. The company intends to use the proceeds for expanding its chain of retail stores and repayment or pre-payment of loans.
The company primarily exports to Australia, China, Canada, European Union, South Africa, the UAE, the UK and the US and 12 countries in the European Union, including Austria, Germany and Switzerland.
The company has four manufacturing units, of which one is located in Panyu, China. The other three units are located in Mumbai, India out of which two units are situated in Santacruz Electronics Export Processing Zone (SEEPZ) and one in Maharashtra Industrial Development Corporation (MIDC), in Mumbai.
Primary market experts were of the view that a lot depends on the success Tara Jewels' IPO as it would pave a way forward for other companies planning to tap the primary market. Further, experts also highlighted the importance of right pricing to attract retail investors, who have remained on the sidelines for the last six to eight quarters as a result of poor market conditions and below-par returns on their investments.
Prithvi Haldea, CMD, Prime Database, said IPOs are based on timing and the market may not see a revival unless large-sized IPO