Gautam Gems Limited

LISTED

SME IPO · IPO Guide

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Issue Price

₹36

Listed On

07 Feb 2018

Listing Price

₹34.15 (-5.14%)

Current Price LIVE

₹34.15 (-5.14%)

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Lot Size Calculator

Application	Lots	Shares	Amount
Retail	2	6,000	₹2,16,000
HNI Min	3	9,000	₹3,24,000

As per financials records, there is very little performance data available and issue is fully priced as per latest earnings. So we give AVOID rating to this SME IPO.

As on Date	QIB	RII	Total
Shares Offered / Reserved	9,97,500	9,97,500	19,95,000
Day 1 24-01-18	1,05,000 (0.11)	8,67,000 (0.87)	9,72,000 (0.49)
Day 2 25-01-18	1,05,000 (0.11)	15,87,000 (1.59)	16,92,000 (0.85)
Day 3 29-01-18	1,29,000 (0.13)	35,76,000 (3.58)	37,05,000 (1.86)
Day 4 30-01-18	7,77,000 (0.78)	96,15,000 (9.64)	1,03,92,000 (5.21)

Started in 2014, Gautam Gems Limited, is Surat Gujarat based company, principally incorporated as a Manufacturer and Trader of rough and polished diamonds. GGL sells diamonds of multiple category, shape, cut, size and color. The range of diamonds company manufactures and trades in purely depends on the demand and supply of diamonds in the local markets. Primarily, Round Brilliant and All Fancy shape, 0.18 carats upto 15.00 carats Size and D to N color with all type of Fancy color diamonds are demanded by its customers. The polishing of the rough diamonds purchased by company is done in-house at its registered and corporate office. GGL sells polished diamonds majorly to jewellery manufacturers, jewellery wholesalers, jewellery retailers, jewellery traders, diamond wholesalers, diamond retailers and its rough diamonds are majorly purchased by rough diamond traders and diamond manufacturers. On financial performance front, GGL’s turnover and net profits were in the range of Rs. 0.04 crore and Rs. 0.0001 crore from FY14 to FY17. For first eight months ended on 30.11.17 it has reported net profit of Rs. 0.41 crore on a turnover of Rs. 11.54 crore. For last three fiscals, it has posted an average EPS of Rs. 0.38 and an average RoNW of 3.50% on an equity base of Rs. 0.01 crore. Issue is priced at a P/BV of Rs. 2.15 on the basis of its NAV of Rs. 16.73 as on 30.11.17 and at a P/BV of 1.49 on the basis of its post issue NAV of Rs. 24.10. If we annualize latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of 32. Thus issue is fully priced and has very little performance track record. Its peers are trading in the range of 11 to 70 P/Es. On merchant banker's front, this is the 16th mandate from its stable in last three fiscals. Out of last 10 listings 5 opened at discount, 1 at par and the rest with a premium ranging from 1% to 13%. As per financials records, there is very little performance data available and issue is fully priced as per latest earnings. So we give AVOID rating to this SME IPO.

Fresh Issue

1
To meet working capital requirement.To meet the expenses of the Issue.
2
To meet working capital requirement.
3
To meet the expenses of the Issue.
4
All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decision
5
Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published on this applicatio
6
With entry barriers, SEBI wants only well informed investors to participate is such SME offer
7
With crazy recent listings, SME IPOs have started drawing attention of investors across the boar
8
However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own ris
9
Above information is based on information available as on date coupled with market perception

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Disclaimer

No financial information whatsoever published herein, should be construed as an offer to buy or sell securities, or as information to make investment decisions, or as an official confirmation of any transaction. All matter published herein is purely for educational and informational purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

💬 Community Discussion

14 Comments

I
IPO Guru. 12 Feb 2018, 19:05

@lomesh, nice observation. But ratings only for listing gains for sme, after that it can move any way. So in sme follow SL strictly.
L
lomesh. 07 Feb 2018, 21:08

subscribe... zodiac... 30%. down
L
lomesh. 07 Feb 2018, 21:08

Avoid....19%. up.. gautam gems
I
IPO Guru. 05 Feb 2018, 21:25

@NV, it should be available today. But registrar yet not made it public. There is no other news related to it available.
N
NV. 05 Feb 2018, 19:22

i am aware about that ipoguru.. my concern is why is allotment detail not available on karvy site ?
I
IPO Guru. 05 Feb 2018, 16:40

@NV, amount debited, so you get allotment and you can see it on listing day. Till that time it won't be visible in your account.
N
NV. 04 Feb 2018, 23:07

amount debited from bank but allotment update not present on site
P
purvang. 03 Feb 2018, 12:54

allotment message is done
I
IPO Guru. 30 Jan 2018, 12:30

we are of avoid view on this.
A
Aditya. 30 Jan 2018, 12:13

kya lagta hai guru ji lagaye ya nahi?
K
kapil. 29 Jan 2018, 15:02

thanks for reply sir
I
IPO Guru. 29 Jan 2018, 14:56

@kapil, very less financial data available, so any comments will be pure guess. So we have no view on this.
K
kapil. 25 Jan 2018, 23:11

ipo guru i think new budget is very good for diamond industry which will effect this ipo in a positive way pls guide apply or not
P
piyush solanki. 25 Jan 2018, 11:41

appliable or not ? any listing gain possible sir? @ IPO guru

Open Date	Jan 24, 2018
Close Date	Jan 30, 2018
Listing Date	Feb 07, 2018
Face Value	₹ 10 Per Equity Share
Issue Price	₹ 36 Per Equity Share
Retail Min Lot	1 Lot (3,000 Shares - ₹ 1,08,000)
Lead Manager	First Overseas Capital Limited

Gautam Gems Limited

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Period	Total Income	Total Expenses	Profit After Tax (PAT)
30.11.17 FY 18	11.54	10.94	0.41
FY17	0.04	0.04	0.00
FY16	0.04	0.04	0.00
FY15	0.04	0.04	0.00
FY14	0.04	0.04	0.00