Tribhovandas Bhimji Zaveri sets IPO price band at Rs 120-126

MUMBAI: Tribhovandas Bhimji Zaveri (TBZ), the jewellery retailer, set a price band of between Rs 120 and Rs 126 per share for its Rs 210 crore initial public offering (IPO). The company will issue 1.66 crore equity shares with a face value of Rs 10 apiece.

The public offering, which will open on April 24, constitutes 25% of its post-issue paid-up capital. The company will use the proceeds to finance new showrooms as well as for working capital requirements. TBZ plans to open new large-format high street showrooms predominantly in metros.

Crisil has graded the IPO 3 out of 5, citing reasons related more to the industry than the company.

"The grade is restrained by intense competition in the jewellery retailing market, which is poised to see planned expansions by regional/traditional players," it said.

The company will be benchmarked against some listed peers like Gitanjali Gems, Thangamayil Jewellery, Shree Ganesh Jewellery. Gitanjali Gems is trading at 6.25 times trailing earnings, Thangamayil is trading at 4 times, while Shree Ganesh is trading at 1.5 times.

TBZ is valued at 11.87 times trailing earnings at the lower end of the price band, and at 12.46 times at the upper end of the price band.