Friday, November 23, 2012

IPO ANALYSIS: TARA JEWELS LIMITED – OVER PRICED – AVOID




Tara Jewels IPO in the price band of Rs 225-230 closes today.  The issue comprises of offer for sale for Rs 70cr and fresh issue of equity shares with premium to the extent of Rs 150 cr.  The company intends to utilize Rs 50 cr for repayment of loans, Rs 34cr for general corporate expenses and the balance amount of Rs 64cr for establishing new retail stores. The IPO carries grade 3 awarded by CARE. Enam and ICICI Securities are the BRLM s to the issue. Although the company has reported consistent growth in revenue and profitability in the past, the premium sought for the shares are on the very high side. The fair value for the IPO shares is around Rs 150. 
   
AVOID SUBSCRIPTION TO THE IPO.

1 comment: