Tara Jewels Limited which had tapped the capital markets with its IPO for Rs 179.5 crs in a price band of Rs 225-230 is to list on Thursday the 6th of December. The company had allotted shares to two anchor investors at Rs 225 which would be changed to Rs 230. The issue was subscribed an overall 1.98 times. The issue consisted of a fresh issue of Rs 109.5 crs and an offer for sale of Rs 70 crs. There was also a pre-IPO allotment of 18 lac shares or Rs 40.50 crs made to CrystalonFinanz AG, an associate entity of Swarosky.

The allotment details show that three entities associated with the merchant bankers namely Axis Bank and ICICI have subscribed to a total of 7.80 lac shares of the total QIB portion of 38.63 lac shares. This constitutes 32.31% of the QIB category. This allotment becomes significant considering that the QIB category was subscribed 1.49 times.

There has been a spurt of interest in IPO’s post the significant 4.5% gain in the previous week in the benchmark indices. The current week sees yet another offering from a jewellery company opening its IPO to raise approximately Rs 600 crs from the market. The success of Tara Jewels post listing would have a positive impact on the prospects of P C Jeweller whose issue opens on the 10th of December and closes on 12th December.

The performance of this share would be very keenly observed. As per latest indications there is a grey market premium of about Rs 11-12 to the allotted price of Rs 230.