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Review By Dilip Davda on December 22, 2016
Veeram Ornaments Ltd (VOL) is an integrated Wholesaler, Trader & Retailer of branded Jewellery & Ornaments. VOL is also into trading business of silver and distributor of readymade gold & silver Jewellery & Ornaments. Its portfolio of products includes gold and silver jewellery with or without studded precious and semi-precious stones. VOL’s gold & silver traditional jewellery & ornaments are either made with kundan, gem stones, American diamonds etc or just plain gold or silver. The company caters to the local markets in its region.
To part finance its working capital requirements, the company is coming out with a maiden IPO of 1137000 equity share of Rs. 10 each at a fixed price of Rs.45 per share to mobilize Rs. 5.12 crore. Issue opens for subscription on 23.12.16 and will close on 28.12.16. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is solely managed by Gretex Corporate Services Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Except for MoA equity at par, it issued all other equity at a price of Rs. 90 per share and has also issued bonus shares in the ratio of 8 for 1 in July 2016. Its current paid up equity capital of Rs. 3.17 crore will stand enhanced to Rs. 4.31 crore post issue.
On performance front, for last two fiscals the company has posted turnover / net profit of Rs. 0.05 cr. / Rs. 0.002 cr. (FY15) and Rs. 1.47 cr. / Rs. 0.07 cr. (FY16). For first quarter of the current fiscal, it has reported net profit of Rs. 0.28 crore on a turnover of Rs. 2.00 crore. If we annualize these earnings and attribute on fully diluted equity post IPO, then asking price is at a P/E of 17 plus, making it a pricy bet.
On merchant banker’s front, this is the first IPO mandate from its stable and has no track record.
Conclusion: Risk avers cash surplus investors may consider for long term investment.
Review By Dilip Davda on December 22, 2016
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The initial public offer (IPO) of Veeram Ornaments Ltd offers an early investment opportunity in Veeram Ornaments Ltd. A stock market investor can buy Veeram Ornaments IPO shares by applying in IPO before Veeram Ornaments Ltd shares get listed at the stock exchanges. An investor could invest in Veeram Ornaments IPO for short term listing gain or a long term.
Read the Veeram Ornaments IPO recommendations by the leading analyst and leading stock brokers.
Veeram Ornaments IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Veeram Ornaments IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.
Our recommendation for Veeram Ornaments IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Veeram Ornaments IPO.
The Veeram Ornaments IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Veeram Ornaments IPO allotment status to check.
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