New Delhi: Jewellery retailer Tribhovandas Bhimji Zaveri (TBZ) on Wednesday fixed the price band at Rs 120-126 per share for its Rs 210-crore initial public offering. The public issue of about 1.66 crore equity shares with a face value of Rs 10 each will open on April 24 and closes on April 26, the company said in a public announcement on Wednesday.
At the lower end of the price band, the company will raise Rs 200 crore, while on the upper band it will mop-up Rs 210 crore.
According to the Red Herring Prospectus (RHP), the proceeds would be used to finance establishment of new showrooms and incremental working capital requirements. As per the RHP, TBZ plans to open nine new large format high street showrooms in eight cities during 2012-13 fiscal. It already has 14 showrooms in 10 cities across five states.
As part of its strategy, the company plans to open nine showrooms, one each in Aurangabad, Gandhidham, Hyderabad, Nagpur, Vadodara, Valsad, Visakhapatnam and two in Kolkata, for which it intends to deploy Rs 19.19 crore in this fiscal.
That apart, it requires additional working capital for financing the inventory in the new showrooms, for which it plans to deploy Rs 1,60.44 crore. IDFC Capital and Avendus are book running lead managers for the issue.
The company manufactures and retails gold, diamond and platinum jewellery.
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