DP Abhushan public offer opens on NSE Emerge

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 11^th 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..