Renaissance Jewellery Limited IPO Message Board (Page 5)

Hi,

What is the latest retail subscription?

1.23x in retail

Hi,
Can anyone tell me the retail subs till now?..
Thanks in anticipation.

Regards,
Rohit

is this worth to suscribe, as i think kolte is going to be tough allotment ,RPL issue yet not clear so ppl will not save money for rpl........can anyone guide pl..........grey premium & any sauda?

ICRA has assigned an IPO Grade 2 to the initial public offering Renaissance Jewellery.
Check : http://www.icra.in/gradingaction/RenaissanceJewellery-20071112.pdf

when the mundra port ipo allotmnet will be out

The Renaissance Jewellery IPO is reasonably priced but there are short-term concerns.

Renaissance Jewellery plans to raise Rs 66-80 crore in the price band of Rs 125-150. Shareholders will also get a warrant (no extra cost) for every two shares allotted, which will be exercisable into a share commencing in April 2009 at 25 per cent premium over the issue price.

Renaissance Jewellery (RJL) manufactures and exports studded gold, platinum and silver jewellery to large distributors and retail chains like Wal-Mart and Zales in the US.

It will also cater to new markets in Europe, Middle East and Far East. It plans to ramp up its one and a half year old Indian retail operations under the brand ‘ Lucera’ by multiplying its 24 stores ten fold over the next five years.

However, the foreign markets, especially the US, will continue to be the main focus for the next three years. From the IPO proceeds, RJL plans to expand manufacturing capacity by 46 per cent to 3250 kg, invest in its US subsidiary, augment working capital and meet issue expenses.
SPARKING NUMBERS
Rs crore FY07 FY08E FY09E
Net sales 438.5 525.0 630.0
% chg 38.7 19.7 20.0
Ebidta 32.6 42.0 50.4
Ebitda margins (%) 7.4 8.0 8.0
Net profit 25.4 31.5 37.8
NPM (%) 5.8 6.0 6.0
P/E at Rs 125* - 7.1 6.0
P/E at RS 150* - 8.6 7.1
* Excluding exercise of warrants


In FY07, its consolidated net sales, operating profit and net profit increased at 38.7 per cent, 50 per cent and 73 per cent respectively, which is impressive. Moreover, margins have improved thanks to a change in product mix, and exemptions because of units in tax-free zones.

Its operating margin is likely to improve as it will focus on mid-range retailers in the US, who have 57 per cent market share, and bring better margins than a Wal-Mart.

However, net profit growth may remain constrained as its units may stop getting tax exemptions from FY09, the termination of zero duty status on Indian jewellery to the US, and breakeven period of one year for its retail stores. Icra has assigned a Grade 2 on a scale of 5 indicating below average fundamentals.

The issue is valued at 7-8.5 times and 6-7 times for FY08 and FY09 estimated earnings respectively. This looks reasonable but investors need to remember that there will be dilution on account of warrants in FY10.
FROM-BUSINESS STANDARD.

DEAR WHAT IS HAPPENING WITH ALLOTMENT STATUS OF VARUN INDUSTRIES???????

very less chance for allocatoin
so just think and then apply
53 Total share is very less//.

so issue size is 150*53 Lack means 80 Crore issue.
so that one is nothing./////////
Not Apply................

for Rajiv
how u r saying this a worst ipo , give reasons please ,as i want to know more about it.

worst ever ipo i have seen in my life.. dont apply

Promoted by Niranjan Shah and his family, Renaissance Jewellery manufactures and sells studded gold, platinum and silver jewellery and is primarily focused on international markets with 96% of revenue accruing from the US. The company also markets studded jewellery products through retail stores operated through its 100% subsidiary Renaissance Retail Venture Pvt Ltd (RRVPL). RRVPL has eight retail outlets (five in Mumbai, one in Pune, one in Lucknow and one in Gurgaon) and 16 shops in shops. The retail products are sold under the brand name, Lucera. It also commenced exports of loose diamonds from its facility situated at Opera House in Mumbai in July 2007.

Two of its three manufacturing units are located at the Santacruz Electronics Processing Zone’s (Seepz) special economic zone (SEZ) in Mumbai. The other is a 100% export-oriented unit (EOU) at Bhavnagar in Gujarat. The 100% subsidiary RRVPL has a manufacturing facility at MIDC, Andheri, Mumbai, to cater to the domestic retail market. Another 100% subsidiary Verigold Fine Jewellery Pvt Ltd (VFJPL) has a manufacturing facility for studded jewellery at Seepz-SEZ in Mumbai.

Renaissance Jewelry New York Inc. (RJNY), another 100% subsidiary, caters to independent mid-range retailers in the US, accounting for 56.9% of the US market.

A talent base of about 40 designers develops about 500 new designs every month, resulting in over 30,000 designs. There were about 2,000 employees at the manufacturing facilities end September 2007.

Strengths

The installed capacity will increase to 3,250 kg in the year ending March 2008 (FY 2008) from 2,250 kg in FY 2007. Capacity utilization is increasing: from 64.07% in FY 2004 to 81.33% in FY 2007. The consolidated capacity would increase to 4,000 kg in FY 2010.
RRVPL plans to increase the number of retail outlets in India from eight to more than 250 in the coming five years after examining the performance of the existing outlets.
Weaknesses

Dependent on a few customers. Top customer accounted for 40.93% and 42.35% of consolidated revenue in FY 2006 and FY 2007, respectively. Top five customers accounted for 99.03% and 95.98% of consolidated revenue, respectively. Top two customers and top five customers accounted for 82.62% and 99.68% of consolidated revenue, respectively, in the three months ended June 2007.
A substantial portion of total turnover is from exports in US dollars. Any fluctuation in the exchange rate will impact profit. Though imports and working capital funding in US dollars is a natural hedge, this may not be able to effectively mitigate the adverse impact of currency fluctuations on operating results.
Rising gold prices could impact demand for ornaments. Also, the dependence on US may affect demand if there is slowdown in that country’s economy.
Valuation

Sales grew at a CAGR of 37.6% and profit after tax (PAT) at a CAGR of 94.7% between FY 2003 and FY 2007. At the price band of Rs 125 – Rs 150 on post-issue equity (of Rs 21.02 crore) including conversion of warrants, consolidated FY 2007 EPS works out to Rs 12.1 and P/E 10.3-12.4. On quarterly annualised EPS of Rs 13.8, P/E is 9.1 – 10.9. However, of the PAT of Rs 7.23 crore in Q1 (ending June 2007) of FY 2008, translation gain on forex fluctuation stood at Rs 5.14 crore. One detachable warrant will be issued along with two equity shares which can be optionally converted at 25% premium to the IPO price between 16th to 18th month from date of allotment
---------CAPITAL MARKET- RATING---43----------------------

EDELWEISS CAPITAL LTD & Renaissance Jewellery are sure bet profits in the existing open issues.

GOOD ISSSUE BUT:

Issue size is only 53 lakhs, wiil be oversubscribed heavily.

Registrar is intime, refunds through checks.

Guy, Beware of the registrar for this IPO Intime spectrum, who wont refund the money through ECS and delay the process. No one cannot forget Intime for their worst job in Central Bank IPO

this is a very good ipo and is going to give good returns on listing:
1. can be straightway compared with gitanjali gems which is at 378.
2. AS THE LISTING IS IN NOV-DEC IT WILL BE PEAK OF MARRIAGE SEASON.
THEREFORE EXPECT DECENT RETURNS ON THE LISTING

What are the credentials of the promotors of this company ?

can any1 suggest grey premium?

this is good ipo bcoz jewellery is good busines
this so high busnise is very good ipo

remember what happened with house of pearl fashions....

it does not seem to be good issue at all...

AVOID IT....