TBZ’s IPO Subscribed 1.15 Times

The initial public offering (IPO) of jewelry retailer Tribhovandas Bhimji Zaveri Ltd. (TBZ) was subscribed 1.15 times, excluding the anchor investors portion, according to data from the stock exchanges.

TBZ aims to raise around $39 million (INR 2 billion) through its IPO of 16.7 million equity shares to finance the establishment of new stores and for the incremental working capital requirements.

TBZThe public issue, which closed on April 26, managed to scrape through on the final day thanks to the bids from institutional and non-institutional investors.

The qualified institutional buyers category, comprising of foreign investors, domestic financial institution and mutual funds, was subscribed 1.29 times. The non-institutional investors group, consisting of corporate and wealthy individuals, was subscribed 1.91 times. However, the retail portion wasn’t fully subscribed as investors bid only for 0.68 times the shares reserved for them.

The majority of the bids came in at the lower-end of the price band of INR 120 to INR 126 per equity share, the data showed.

TBZ allocated about 2.5 million equity shares to three anchor investors namely, HSBC Global Investment Funds, HSBC India Alpha (Mauritius) Ltd. and Credit Suisse (Singapore) Ltd. at INR 120 per share on Monday, a day before the issue opened for subscription.

The company currently operates 14 showrooms in 10 cities and plans to open an additional 43 showrooms by the end of fiscal year 2015. TBZ plans to invest $3.7 million (INR 191.94 million) to open new showrooms and $31.3 million (INR 1.60 billion) to meet incremental working capital requirements, among others.

TBZ has proposed to list its equity shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). IDFC Capital Limited and Avendus Capital Private Limited were the book-running lead managers of the issue.

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