Review By 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 on December 22, 2016
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 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 mentioned in the above answer to "How is Veeram Ornaments IPO?"
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.
