Tribhovandas Bhimji Zaveri Limited

 Tribhovandas Bhimji Zaveri Limited 

Tribhovandas Bhimji Zaveri IPO Analysis

With a track record of 145 years, Tribhovandas Bhimji Zaveri (TBZL) is a well-known and trusted jewellery retailer in India, particularly in Maharashtra. Started as a partnership firm initially, it became public limited company in July 2007. Currently, it has three promoters: Shrikant Zaveri, Binaisha Zaveri and Raashi Zaveri. Having registered office at Zaveri Bazaar, famously known for the gold jewellery business in the Indian financial hub, Mumbai, the company mainly sells gold and diamond-studded jewellery along with other products like platinum and Jadau jewellery across its showrooms. To cater to the changing taste across regions, it offers wide variety of jewellery from regions across India and also offers jewellery from various parts of world such as Italy, Turkey and Thailand. The company retails its jewellery through 14 showrooms with total carpet area of 48,818 sq ft, in 10 cities. Of the 14 show rooms, 11 are large format high street show rooms with carpet area of 3,000 sq ft and more and the remaining three are small format high street showrooms with carpet area of 1,000-3,000 sq ft. Currently, the company has six showrooms in Maharashtra, three in Andhra Pradesh, three in Gujarat, and one each in Kerala and Madhya Pradesh. Twelve out of 14 show rooms are under lease. Gold jewellery is the major contributor to revenue. In the nine months of fiscal ended March 2012 (9M of FY2012), gold jewellery constituted 72.48% of the total revenue. As a strategy to improve the margin, the company plans to increase share of diamond jewellery revenues in total revenue. The share of diamond- studded jewellery in total revenue increased from 21.62% in FY 2010 to 22.08% in FY 2011 and to 25.20% in 9M of FY2012. With the increase in scale of operations through expansion of retail outlets, the profitability has improved substantially in the past three years. The net profit margin has doubled from a mere 1.7% in FY 2008 to 3.4% in FY 2011 and has further increased to 4.5% in 9M of FY 2012. The marketing activities are focused on generate footfalls in showrooms throughout the year with launch of bangles and chain festivals, Oodiyanam festivals, advance payment scheme called, "Kalpavruksha" (paying advance amount throughout a plan period)

Tribovandas Bhimji Zaveri Grey Market Premiums

Company Name	Offer Price (Rs.)	Premium (Rs.)	Kostak (Rs. 1 Lac Application)	Kostak (Rs. 2 Lac Application)
Tribovandas Bhimji Zaveri	120 to 126	4 to 5	--	--

Tribhovandas Bhimji Zaveri

 Tribhovandas Bhimji Zaveri

Tribhovandas Bhimji Zaveri IPO opens on 24 April 2012

The company fixed IPO price band of Rs 120 to Rs 126

Tribhovandas Bhimji Zaveri (TBZ), a jewellery retailer in India, is entering the capital markets on 24 April 2012, with an initial public offering (IPO) of 1.67 crore shares. The company has fixed an IPO price band of Rs 120 to Rs 126.

The issue will constitute 25% of the post-issue paid-up capital of the company. The issue will close on 26 April 2012.