Mumbai The primary market eagerly waits as the more- thancentury- old jewelry maker Tribhovandas Bhimji Zaveri ( TBZ) Initial Public offering ( IPO) hits capital markets today. The company hopes to raise Rs 200- 200 crores with its public
offering of 1,66,66,667- equity share of Rs 10 each within a price band of Rs 120- 126 via book building offer. With this offer, company is diluting little over 25% of post issue equity.
Funds from the IPO will be utilized for expansion of its retail outlet and other general corporate requirements.
The issue closes on April 26. CRISIL has assigned IPO Grade 3 to this offer indicating at alt39 average fundamentalsalt39 of the company. Minimum application is to be made for 45 shares and in multiples thereon thereafter, the company said.
On performance front, TBZ posted net profit of Rs 16.94 crore and Rs 40.42 crore respectively for the fiscal 2009- 10 and 2010- 11 on a turnover of Rs 885.25 crore and Rs 1194.46 crore.
For the first three quarters ended 31.12.2011 it earned net profit of Rs 50.50 crore on a turnover of Rs 1118.58 crore.
Based on this the company is likely to post an EPS of Rs 10 plus on expanded equity base. Thus the IPO is priced at a PE of 12 and around 3.8 on P/ BV basis.
The companys issue is lead managed by IDFC Capital and Avendus Capital, which will be listed on BSE and NSE.
