Review By on April 21, 2017
Pure Giftcarat Ltd (PGL) erstwhile known as L'avace Dirays Limited is primarily engaged in trading of bullion, diamond, pearls and precious stones, jewels, gold, silver, platinum and precious or semi-precious metals, ornaments, jewellery, articles of value made partly or fully of above mentioned materials, stones or metals. Currently the company is engaged in trading and retailer ship of diamonds in Surat. Its operations include sourcing of Diamonds from primary and secondary source suppliers in the domestic market and sale of diamond to the retail and wholesale operations in India.
To part finance its working capital requirement and general corpus fund needs, the company is coming out with a maiden IPO of 5730000 equity share of Rs. 10 each at a fixed price of Rs. 13 per share to mobilize Rs. 7.45 crore. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Issue opens for subscription on 26.04.17 and will close on 28.04.17. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Navigant Corporate Advisors Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Company’s entire current paid up equity issue is done at par value. Its current paid up equity capital of RS. 15.89 crore will stand enhanced to Rs. 21.62 crore post issue.
On performance front, the company has posted turnover/net profits of Rs. 4.23 cr. / Rs. (-0.03) cr. (FY13), Rs. 1.57 cr. / Rs. (-0.01) cr. (FY14), Rs. 0.51 cr. / Rs. 0.02 cr. (FY15) and Rs. 45.39 cr. / Rs. 0.08 cr. (FY16). For nine months ended on 31.12.16 of the current fiscal, it has earned net profit of Rs. 0.12 cr. on a turnover of Rs. 85.57 cr. Thus sudden jump in turnover for past 21 months is surprising. If we annualize the latest earnings and attribute it on the fully diluted equity post issue then asking price is at a P/E of 185 plus and at a P/BV of 1.3. As per prospectus details, it has not listed peers to compare with.
On merchant banker’s front, this is the third mandate from its stable and from the earlier issues one issue gave positive returns on the listing day and the last IPO of KMS Medi is yet to be listed.
Conclusion: Considering aggressive pricing, only risk savvy cash surplus investors may invest in this IPO.
Review By on April 21, 2017
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 Pure Giftcarat Ltd. offers an early investment opportunity in Pure Giftcarat Ltd.. A stock market investor can buy Pure Giftcarat IPO shares by applying in IPO before Pure Giftcarat Ltd. shares get listed at the stock exchanges. An investor could invest in Pure Giftcarat IPO for short term listing gain or a long term.
Read the Pure Giftcarat IPO recommendations by the leading analyst and leading stock brokers.
Pure Giftcarat IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Pure Giftcarat IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Pure Giftcarat IPO?"
Our recommendation for Pure Giftcarat 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 Pure Giftcarat IPO.
The Pure Giftcarat IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Pure Giftcarat IPO allotment status to check.
