Review By on September 24, 2015
Patdiam Jewellery Ltd (PJL) is engaged in the business of designing, manufacturing and marketing of various jewellery made out of gold, platinum, and silver with studded diamonds, precious and semi-precious stones. Being 100% EOU (export oriented unit) , it markets it products in international markets. PJL develops on an average 200 designs every month to cater to the taste of customers. Its product range includes rings, earrings, pendants, bracelets, necklaces etc. It exports the products to various countries including Spain, Polland, Germany, Holland, Norway, Slovenia, Dubai, Saudi Arabia, Hong Kong, Japan, France, Ireland etc.
To meet its working capital requirement, the company is coming out with a maiden IPO of 1317000 equity shares of Rs. 10 each at a fixed price of Rs. 38 per share to mobilize Rs. 5.01 crore. Issue opens for subscription on 30.09.15 and will close on 05.10.15. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Since inception till 2004 it issued equity at par and then issued bonus in the ratio of 3 for 5 in July 2006 and 1 for 2 in August 2015. Its current paid up equity of Rs. 3.00 crore will stand enhanced to Rs. 4.32 crore post issue. Shares will be listed on BSE SME after allotment.
On performance front, the company has posted an average EPS of Rs. 2.23 with RONW of 2.70%. For FY 2015 it has earned net profit of Rs. 0.52 crore on a turnover of Rs. 54.63 crore. This translates into an EPS of Rs. 1.73 (on post bonus equity) and Rs. 1.20 on post issue equity. Thus asking price of the issue is at a P/E of 31.7 on post IPO basis. It appears to be aggressively priced.
On merchant banker’s front, this is the 14th SME issue from its stable and earlier mandates have given average rewards.
Risk avers fund surplus investors may invest for long term rewards.
Review By on September 24, 2015
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Patdiam Jewellery Ltd. offers an early investment opportunity in Patdiam Jewellery Ltd.. A stock market investor can buy Patdiam Jewellery IPO shares by applying in IPO before Patdiam Jewellery Ltd. shares get listed at the stock exchanges. An investor could invest in Patdiam Jewellery IPO for short term listing gain or a long term.
Read the Patdiam Jewellery IPO recommendations by the leading analyst and leading stock brokers.
Patdiam Jewellery IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Patdiam Jewellery IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Patdiam Jewellery IPO?"
Our recommendation for Patdiam Jewellery IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Patdiam Jewellery IPO.
The Patdiam Jewellery IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Patdiam Jewellery IPO allotment status to check.
