Price Fixed at Rs 28 per equity share
October 9, 2017: The
Public Issue of Ratlam based DP Abhushan Limited, engaged in the retail
business of various jewelleries and ornaments, opened today for bidding on NSE
Exchange Platform. The SME public issue comprises of 59, 32,000 Equity Shares
of face value of Rs. 10 each for cash at price of Rs. 28 per Equity Share, aggregating up to ` 1660.96
lakhs. The issue will close on 11th
Oct. 2017.
The net Offer for Sale for
public would be 56,32,000 Equity Shares of ` 10/- each for cash at a price of `
28/- per share aggregating to Rs 1576.96 lakhs and the balance 3,00,000 Equity
Shares of ` 10/- each for cash at a price of ` 28/- per share aggregating `
84.00 lakhs reserved for market makers. 28, 16,000 Equity Shares of ` 10/- each
for cash at a price of ` 28/- per share (including a premium of ` 18/- per
Equity Share) will be available for allocation for allotment to Retail
Individual Investors of up to ` 2.00 Lacs. 28, 16,000 Equity Shares of ` 10/-
each for cash at a price of ` 28/- per share (including a premium of ` 18/- per
Equity Share) will be available for allocation for allotment to Other Investors
of above ` 2.00 Lacs.
The net proceeds from the
IPO will be utilized for meeting working capital requirements and general
corporate expenses.
The Lead Manager to the Issue
is Hem Securities Limited, a leader in SME IPOs and the Registrar to the Offer
is Bigshare Services Pvt. Ltd.
For the fiscal year
ended on March 31, 2017, March 31, 2016 and March 31, 2015 the total revenue of
our Company stood at Rs. 45371.02 Lakhs, Rs. 48822.43 Lakhs and Rs. 45989.44
Lakhs respectively. Further, our PAT for the fiscal year ended on March 31,
2017, 2016 and 2015 as per Restated Financial Statements were Rs. 490.45 Lakhs,
Rs. 324.73 lakhs and Rs. 131.46 Lakhs respectively.
The Company is
engaged in the retail business of various jewelleries and ornaments made out of
gold, diamonds and platinum studded with precious and semi-precious stones. The
Company is run by Third generation of the promoter family. Its portfolio
includes rings, earrings, armlet, pendants, gajrahs, nose rings, bracelets,
chains, necklaces, bangles and other wedding jewellery. D P Abhushan currently
has four showrooms under the “D.P. Jewellers” brand located in four different
cities of India i.e. Ratlam, Indore, Bhopal and Udaipur.
Mr. Vikas Kataria,
Chairman and Managing Director, said “All our showrooms are operated
and managed by the Company. We have shifted to a new showroom of 10,395 sq ft
at Indore. The manufacturing of jewellery products are done through job work
from third parties. Further, we also purchase readymade jewellery from
independent jewelers. We carry operations relating to quality control,
inventory management and business development from our corporate office in
Ratlam. We have also entered into an agreement with R.S. Diamonds Private
Limited for sale of their diamond jewelleries under brand of “Divine Solitaires”
from our retail outlets”
Mr Gaurav Jain and
Mr Prateek Jain, Directors, Hem Securities, highlighting the offer and
investment rational said “Hem Securities is proud to bring this IPO at very
attractive valuations as compared to industry average leaving a large room for
wealth creation over a period of time. The Company is bringing the issue at P/E
multiple of 9.32 on pre issue FY17 EPS at a price of Rs 28/- per Share while
peers like Thangamayil Jewellery, Tribhovandas Bhimji Zaveri ,PC Jeweller are
trading at P/E multiple of more than 25 & industry composite p/e multiple
stands at 45.88. Company has posted return on equity ratio of 19.19% in FY16
& 22.78% in FY17 ,thus indicating strong return on shareholder’s fund”
DP Abhushan has
been awarded with several recognitions in the recent years, such as “Best
Promising Gems & Jewellery” Award in 2017 by Indian Bullion and Jewellers
Association Ltd, “Best Bridal Jewellery of the year (Under Rs. 15 lakhs)” Award
by IJ Jewellers in 2016, Madhya Pradesh Entrepreneur & Excellence Award
Indore for “Trusted Brand of the year” in 2016..
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