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April 22, 2012

Tribhovandas Bhimji Zaveri - IPO

Issue Terms

Incorporated in 1949, Tribhovandas Bhimji Zaveri Ltd. is India top jewellery retailer. Company sells gold jewellery, diamond-studded jewellery, platinum jewellery and jadau jewellery though 14 showrooms in 10 cities across five states.
Company's most popular and oldest showroom is located at Zaveri Bazar, Mumbai. This was established in 1864. Along with in-house design jewellery, Bhimji Zaveri also offers jewellery from various parts of the world such as Italy, Turkey and Thailand.
It was awarded the 'Readers Digest Trusted Brand Asia' in the category of 'Jewellery Shop' in 2006, 2007 and 2008.
As at March 31, 2012, it had 1,192 employees. In Fiscal 2011, its revenue from operations was 11,939.31 million on a consolidated basis, of which 72.51% was from the sale of gold jewellery, 22.08% was from the sale of diamond-studded jewellery and 5.41% was from sale of other products.
Company has plans to open 43 more showrooms by the end of Fiscal 2015 in 43 cities across 14 states
Issue price / Floor Price (Rs) 120-126
Application per share (Rs) 120
Minimum investment amount (Rs) 5,400.00
Minimum bid (no of shares) 45 shares and in multiples of 45 thereafter
Maximum Shares for Retail 1665-1575

Issue Date and Size

Issue opens 24-Apr-12
Issue closes 26-Apr-12
Listing on BSE,NSE
Issue size (Rs cr) 200-210
Mkt cap at issue price (Rs cr) 800-840
Shares on Offer
Total shares offered 166.67
Of above, offered to public 166.67
Post-issue shares 666.67
Post-issue promoters' holding(%) 73.95
Company Financials (Rs cr) 31/12/2011
No of months 9
Turnover 1,117.78
Net profit / (loss) 50.31
Borrowings 3.26

Lead Managers & Registrar

Lead Manager(1) IDFC Capital Limited
Lead Manager(2) Avendus Capital Private Limited
Registrar Karvy Computershare Private Limited

Company Contact Details

Company's address 241/43, Zaveri Bazaar, Mumbai
Pincode 400 002
Tel No. 91 22 3956 5001
Fax No. 91 22 3073 5088

Subscription Details 

No of times

Qualified Institutional Investor -
Non Institutional Investor -
Retail Investor -
Employee -
Total -


TBZ is a jewellery retailer in India with 14 showrooms in nine cities across five states; It primarily sells gold jewellery and diamond-studded jewellery
Objects of Issue
To finance the establishment of new showrooms (plans to open new 44 showrooms (26 large format high street showrooms and 18 small format high street showrooms) by end of fiscal 2014;
To finance incremental working capital requirements

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March 17, 2012

Myth of 9.1% assured return in Kotak Assured Annual Income Plan

If someone say that you can get 9.1% assured return on your investment for 20 years, will you not jump,,, That is what some “financial advisors” tell you about Kotak Assured Annual Income Plan. Tempted – do not be as there is catch. This return you get after investing for 10 years. So what is reality. Actually your investments earn only at 4% less than even saving banks rate.
Not convinced then please see attached calculations:
AssuredIncomePlan.xls - This is calculation for Kotak Assured Income Plan as per their site (
DepositScheme-IS-02.xlsx - This is calculation for plain vanilla deposit after accounting for insurance premium for the required term plan, income tax on the interest income received, annuity and final payment guaranteed as above plan.
And without any surprise, the interest rate at which you need to invest is just 6% and not 9.1% to match the guaranteed return of the plan.
So beware of mixing investment with insurance…

Update-01> Have taken 30% tax bracket instead of earlier 10% in order show worst case scenario.
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March 12, 2012

Second Innings

When we started way back in 2007, we used Wordpress to host our website since that time Blogger was not that mature and the functionality was limited. Over last 5 years Blogger has grown and lot of functionality got added. On other side we were concentrating on IPOs only that have dried up over last two years thus our website also got did not get much update. So now we want to revive our website and first logically thought was where do we host. After lot of deliberations, we decided to move to Blogger so to avoid vagaries of the hosting companies. So here we are on Blogger and with renewed mandate to expand beyond IPOs and start posting about different investment options. Thanks for all our patrons and we will ensure that we will be up to your expectations.
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