SME IPO of  Dhyaani Tile & Marblez Ltd

Grey Market Trend News :
On 6 April 2022
Subject to Rates# :  nil
GMP Rates :  nil
Past Trend details at the bottom

Subscription Trend on 4.4.2022 @ 5.00 pm
NII (50%) 228,000 Sh : 1.96 T
RII (50%) 228,000 Sh : 2.36 T
Tot 456,000 Sh : 2.16 T

IPO Opens on 30 March 2022
IPO Closes on 04 April 2022
Allotment tentatively on  8 April 2022
Listing tentatively on : 12  April 2022
Listing on BSE SME
Net Issue to the Public : 456,000 Shares
( net of Market Maker portion)
IPO size  Rs. 2.3256 Crore
Retail Quota : 50 %  eg ? Shares
Retail one time  : ? Applications
Price Band ( FV Rs. 10) of Rs. 51
Min Order Quantity : ? Shares
Retail Min Application : ? Shares/ Rs. ? 

Business :

The business operations are broadly divided into two product categories:
# Double Charge Vitrified Tiles: Double charge vitrified tiles are tiles that are fed through a press which prints the pattern with a double layer of pigment, 3 to 4 mm thicker than other types of tiles. This process does not permit complex patterns but results in a long-wearing tile surface, suitable for heavy traffic commercial projects.
# Glazed Vitrified Tiles: Glazed vitrified tiles are flat slabs manufactured from ceramic materials such as clay, feldspar and quartz and other additives and fired at high temperatures to ensure high strength and low water absorption. These tiles are coated with glaze materials prior to the firing process.
It generally sells its products through a network of distributors and dealers/traders located at different locations of the country. At present, it has distribution network of around 40 traders spread across various states.

Promoters:

Mr. Chintan Nayan Bhai Rajyaguru

Objects of the Issue:

To meet out the Working Capital requirements of the Company

Registered office :

420, Times Square Arcade, Opp. Rambaug, Thaltej-Shilaj Road, Ahmedabad – 380059
Company Secretary and Compliance Officer: Ms. Foram Ajmeri

Lead Manager:

GYR CAPITAL ADVISORS Pvt Ltd

Observations & Guidance by Paresh Gordhandas ( Research Analyst) : 

Dhyaani Tile & Marblez Ltd SME IPO Financial & Analytical Ratios#
# the company has issued 910,000 Equity Shares on 13 January 2022 by way of bonus shares and according the share capital of the company has increased to 1040,000 shares and to get the correct picture of earnings per share, the net profit should be divided by enlarged capital. According the figures of EPS and Return on Networth as given below must be revised.
Earnings per Share 2019-20 Rs ( 14.50)
Earnings per Share 2020-21,Rs 53.92
Earnings per Share 2021-22 6 M Rs 48.60
Return on Net Worth: 19-20 (101.12) %
Return on Net Worth: 20-21: 78.94 %
Return on Net Worth: 21-22 6 M : 83.18%
Book Value of the Share as on 30.9.21 Rs 116.86

IPO Peer Comparison:
Kajaria Ceramics @ PE Multiple of 51.12
Somany Ceramics @ PE Multiple of 48.82
Orient Bell Limited @ PE Multiple of 61.20

Observation by Paresh Gordhandas ( Research Analyst )
The company has earned net profits of Rs. 26.96 lac during 2020-21, and if divided with increased share capital subquent to the bonus shares, the EPS is not impressive and accordingly the offer price of Rs. 51 seems to be on higher side.

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