Thangamayil Jewellery IPO - Analysis, Recommendation and Review

As subscription for new IPO improves, more IPOs are coming to assess investor interest. Thangamayil Jewellery has come out with an initial public offering (IPO) of Rs 28.75 crore on January 27, 2010. The price band for the issue has fixed at Rs 70-75 per equity share. The issue will close on January 29.

The company is one of the leading jewellery retailers in Madurai and trades in Gold Jewellery, Diamond and Platinum jewels. It has introduced the Hallmarking practice for the first time in Madurai. For the year ended March 31, 2009, it has reported 10% jump in its net sales of Rs 246.84 crore and net profit of Rs 7.49 crore.

The company intends to use issue proceeds for expansion of existing business by establishing retail outlets at Tuticorin, Dindigul, Theni, Nagercoil, Tirunelveli, Kovilpatti and Sivakasi, and for renovation of the existing outlet at Madurai; working capital requirement and issue expenses.

The shares of the company are proposed to be listed on the BSE and NSE. The book running lead manager to the issue is Keynote Corporate Services Limited and SKDC Consultants Limited is the registrar.

Watch out this blog for more details on subscription, allotment and listing!

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