Tara Jewels files IPO papers for 2nd time, ups issue size

After getting failed to launch the IPO last year due to weak market conditions, Tara Jewels filed the draft red herring prospectus with SEBI again. The company increased the issue size to Rs 220 crore from Rs 200 crore earlier, in which fresh issue size remained the same of Rs 150 crore but the shareholder Fabrikant HK Trading plans to raise Rs 70 crore (offer for sale) instead of Rs 50 crore earlier.

Tara Jewels may also consider private placement of up to 18 lakh equity shares for cash consideration aggregating up to Rs 50 crore. If the pre-IPO placement is completed, then accordingly the number of equity shares size will be proportionately reduced from the fresh issue.

It is an integrated player in the jewellery industry with experience ranging from designing to retailing of jewellery, having four manufacturing units. One is located in Panyu, China and other three units are located in Mumbai, India out of which two units are situated in SEEPZ and one in MIDC. It operates jewellery retail stores under the brand "Tara Jewellers".

The company intends to use issue proceeds for establishing retail stores; and repaying loans. It plans to launch 20 project stores across India by December 31, 2012.

For the period of three months ended June 30, 2011, it reported consolidated net profit of Rs 7.4 crore on total income of Rs 350.37 crore. In the year ended March 31, 2011, its net profit stood at Rs 40.83 crore and total income of Rs 1,140.81 crore, a increase 69% and 40% over previous year, respectively.

Enam Securities Private Limited and ICICI Securities Limited are the book running lead managers to the issue.