Tara Jewels Ltd on Monday announced its Rs 180-crore initial public offering (IPO), with a price band of Rs 225-230 per share.

The IPO will open on 21st on November and close on 23rd of November. The issue will be composed of fresh issue of shares worth up to Rs 109.5 crore plus an offer for sale of shares worth up to Rs 70 crore. Share will have a face value of Rs 10 apiece.

Tara Jewels, which operates in retail, export as well as manufacturing, has plans to use the proceeds from the IPO to meet the expenses of setting up retail stores and for settlement of loans.

Rajeev Sheth, Chairman & Managing Director of Tara Jewels, said, "We plan to set up 20 new stores by March 2013. These will be mostly in the north and central India."

The company will spend nearly Rs 66.5 crore million to establish new stores in eighteen cities. On an average, the new stores will be around 1,000 square feet. Currently, the company operates around thirty stores across India. It also has plans to expand its global footprint by foraying into new countries of South and Central America.

Around Rs 50 crore from the proceeds will be used to repay or prepay loans to the tune of Rs 20 crore to ICICI Bank and Rs 30 crore to the SBI.

Investment bankers are confident that the issue will enjoy a great success because Tara Jewels' business model is quite different from other jewellery manufacturers.