SME IPO of Eighty Jewellers 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 5 April 2022 @ 5.00 pm
NII (50%) 1281,000 Sh : 2.88 T
RII (50%) 12,81,000 Sh : 2.03 T
Tot 25,62,000 Sh : 2.45 T

IPO Opens on 31 March 2022
IPO Closes on 05 April 2022
Allotment tentatively on  9 April 2022
Listing tentatively on : 13  April 2022
Listing on BSE SME
Issue to the Public : 27,00,000 Shares

IPO size  Rs. 11.07 Crore
Retail Quota : 50 %
Retail one time  : ? Applications
Price Band ( FV Rs. 10) of Rs. 41
Min Order Quantity : 3000 Shares
Retail Min Application : 3000 Shares/ Rs. 123,000 

Business :

The Company is part of the Anopchand Tilokchand group which it believes to be a well-known name and established brand in the Jewellery sector since many decades in and around Chhattisgarh. It is currently engaged as a master franchisee of Anopchand Tilokchand Jewellers Private Limited (“ATJPL”) and involved in the trading of various jewelleries, ornaments, watches and luxury articles made out of gold, silver, diamonds and platinum studded with precious and semi-precious stones under the B2B model in the name “Anopchand Tilokchand Jewellers”. Its product portfolio includes rings, earrings, armlet, pendants, gajrahs, nose rings, bracelets, chains, necklaces, bangles, watches, luxury items and other wedding jewellery. The products cater to the customers across high-end, mid-market and value market segments.
It has entered into a master franchise agreement dated November 30, 2021 with Anopchand Tilokchand Jewellers Private Limited wherein it has been given rights to open stores in the Brand name of Anopchand Tilokchand Jewellers either directly or through sub franchisee arrangements.

Currently, it sell all our jewellery and related products to (i) a sub-franchisee store at Korba, Chhattisgarh and (ii) a retail store at Bilaspur, Chhattisgarh. It has entered into a sub-franchise agreement dated April 07, 2014 with M/s. Chhattisgarh Sales Corporation valid for a period of 9 years and further extendible for further 6 years, who operate the showroom located at Korba, Chhattisgarh. The jewellery and other related articles are sold under a B2B model as wholesaler to M/s Grand Bhagwati who operate the showroom located at Near CMD Chowk, Link Road, in front of Hotel Deep, Bilaspur.
It is currently operating on a B2B business Model and offers its customers a broad variety of jewelleries, ornaments, watches and luxury articles made out of gold, silver, diamonds and platinum studded with precious and semi-precious stones in order to cater to both regional and modern tastes

Promoters:

Mr.Tilok Chand Bardia, Mr. Nikesh Bardia and Mr. Nitin Kumar Bardia.

Objects of the Issue:

To meet working capital requirements

Registered office :

Anup Plaza Sadar Bazar,Raipur, Chhattisgarh, 492001 India
Company Secretary and Compliance Officer: –

Lead Manager:

Hem Securities Ltd

Observations & Guidance by Paresh Gordhandas ( Research Analyst) : 

SME IPO Financial & Analytical Ratios#
Earnings per Share 2019-20 Rs 2.07
Earnings per Share 2020-21,Rs 5.03
Earnings per Share 2021-22 6M Rs 1.11
Return on Net Worth: 19-20 28.13 %
Return on Net Worth: 20-21: 40.58 %
Return on Net Worth: 21-22 6 M : 8.21%
Book Value of the Share as on 30.9.21 Rs 13.49

IPO Peer Comparison:
Patdiam Jewellery Ltd @ PE Multiple of 11.47
Radhika Jeweltech Ltd @ PE Multiple of 15.17
DP Abhushan Ltd @ PE Multiple of 31.37
PC Jewellers Ltd @ PE Multiple of 17.81
Kalyan Jewellers India Ltd. @ PE Multiple of 42.64

Observation by Paresh Gordhandas ( Research Analyst )
The profitability of the company shows high fluctuations.For example during 2020-21, on turnover of Rs. 78.69 Cr, the company has made net profits of Rs. 3.77 Cr (4.79%)whereas in the first 6 months of current year eg 2021-22, on turnover of Rs. 44.36 Cr, it has net profit of Rs. 83 Lac (1.87%)

# This is only coverage of News related to Grey Market . We donot deal in Grey market premium or Subject to rates, nor we recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.
News of Grey Market Past Trend
On