Tara Jewellers to launch IPO soon

Tara Jewellers a recent entrant to organized jewelry retail is making hay while the sun shines

with plans to open 20 more company-owned showrooms by June this year.  Known for its studded jewelry collection, it will also open an IPO soon. Market regulator Securities and Exchange Board of India (SEBI) has already given its approval to launch the IPO for raising up to Rs 200 crores. This will help fund the company’s retail business growth.

Tara Jewels had filed its draft red herring prospectus with the SEBI for the IPO in September, for which Enam Securities is the sole book running lead manager. Vikram Raizada, Executive Director, Marketing, Retail and Business Development of Tara Jewels informs, they started the retail business recently and already have 31 company-owned stores across 19 cities. Their plan is to add 20 more stores soon.

Tara Jewels, whose total income was Rs 815.95 crores in FY 10, has four manufacturing facilities - one in China and three in Mumbai, employing about 1,500 staff across four continents. The total aggregate jewelry production of the company stood at 2,562.91 kg in 2010. The product portfolio includes fashion, bridal and handmade jewelry with prices ranging from $18 to $10,000.
Initially, Tara Jewellers will focus on establishing the retail brand in the western and northern regions before moving to the east and south, he said. Tara Jewels primarily exports to Australia, China, Canada, European Union, South Africa, the UAE, the UK and the US. In European Union it exports to 16 countries, including Austria, Germany and Switzerland. Besides its aggressive plans for retail expansion in the domestic market, Tara Jewellers is also looking at exploring new markets for exports.