Thangamayil Jewellery is coming out with an initial public offering (IPO) of Rs 28.75 crore on January 27, 2010. The price band for the issue has been fixed at Rs 70-75 per equity share. The issue will close on January 29.
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.
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.
Revenue break up for FY09:
Gold & Jewellery – Rs 241 crore
Diamond - Rs 0.28 crore
Silver – Rs 5.53 crore
Others - Rs 0.04 crore
It 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.
Equity shares 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.
