Jeweller to list shares in bourses

Staff Reporter

MADURAI: A city-based jewellery retailer, Thangamayil Jewellery, which has five outlets in south Tamil Nadu, will list its equity shares on the bourses on Wednesday with a price band of Rs. 70 to Rs. 75.

Addressing a press conference here on Monday, Ba. Ramesh, Joint Managing Director of the firm, said that Rs. 35 crore would be raised through the initial public offer (IPO). A sum of Rs. 6.25 crore had been allotted for institutional buyers. The shares would be listed in Bombay Stock Exchange and National Stock Exchange.

After the IPO, one-third of the total shares of the company would be in public hands.

The funds raised through bourses would be ploughed back into the business and used to fund expansion plans.

“Of the 11 showrooms we planned to open by 2010-11 at a cost of Rs. 48 crore, we have opened five. While the IPO will bring in Rs. 35 crore, the remaining Rs. 13 crore will come from internal funding,” he said.

K.N. Rajagopalan, financial advisor to Thangamayil Jewellery, said that the firm followed a system of having no subsidiaries or associates and was in a strong financial position with a robust balance sheet.

The independent directors in the company’s board would include S. Rethinavelu, senior president of the Tamil Nadu Chamber of Commerce and Industry, Lalji Vora, Managing Director of Milan Textile Enterprise, and V.R. Muthu, chief executive officer of Idhayam Group of Companies.

The company had got a rating of 3 out of 5. The gold business was expected to do well as domestic market alone was expected to be worth US $ 3,000 crore by 2015.

India, which accounted for 20 per cent of the global jewellery market, was the largest consumer in the sector.

Suraj Saraogi of Keynote Corporate Services, which is the sole book running lead manager to the issue, said that the price band was very fair for a company registering 70 per cent growth.

The company had achieved a turnover of Rs. 247 crore with profits-after-tax being Rs. 7.49 crore for the financial year 2008-09.

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