Thursday, April 19, 2012

Tribhovandas Bhimji Zaveri (TBZ) IPO

Tribhovandas Bhimji Zaveri IPO
Tribhovandas Bhimji Zaveri, a 145-year old Mumbai based jewellery retailer has come out with an IPO of more than 1.66 crore equity shares by diluting 25% stake. The company has 14 showrooms in nine cities across five states and it primarily sells gold jewellery and diamond-studded jewellery.

The IPO shall open on 24 April, 2012 and shall close on 26 April, 2012. The company has fixed the price band of the IPO at Rs 120-126 per share.

The company plans to utilize the proceeds of the IPO to open an additional 44 showrooms (26 large format high street showrooms and 18 small format high street showrooms) by the end of fiscal 2014 with an outlay of Rs 18.17 crore and will use the rest for meetings its working capital requirement.

Equity shares are proposed to be listed on the BSE and the National Stock Exchange.

The book running lead managers to the issue are IDFC Capital Limited and Avendus Capital Private Limited. Karvy Computershare Private Limited is the registrar to the issue.

Recommendation:

CRISIL has assigned grade 3 to the IPO, which indicates average fundamentals. We would advice only investors with high risk appetite to invest in this issue.

Subscription:

Tribhovandas Bhimji Zaveri IPO finally managed to get fully subscribed at 1.15 times on the last day of the IPO after just managing a dismal 20% subscription only a day before.

At the close of the IPO,
QII segment got subscribed 1.29 times
NII segment got subscribed 1.91 times
Retail segment got subscribed 0.68 times

Allotment:

Check TBZ IPO Allotment status here!

Listing:

TBZ IPO got listed on 9 May, 2012. The stock opened at Rs 115 a share against its issue price of Rs 120, touched an intraday high of Rs 119.80 and low of Rs 110, before closing the day at Rs 111.2, down 7% against its issue price.


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