Sona Hi Sona Jewellers (Gujarat) Limited

LISTED

SME IPO · IPO Guide

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Issue Price

₹10

Listed On

15 Oct 2019

Listing Price

₹11.15 (+11.50%)

Current Price LIVE

₹11.15 (+11.50%)

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Lot Size Calculator

Application	Lots	Shares	Amount
Retail	2	20,000	₹2,00,000
HNI Min	3	30,000	₹3,00,000

Company has shown incremental good results, RoNW is 2.87% and issue looks highly priced. Business of jewellery and ornaments is very competitive. Performance of BRLM is poor. So we give 'AVOID' rating to SME IPO.

As on Date	Combined (QIB + NII)	RII	Total
Shares Offered / Reserved	21,30,000	21,30,000	42,60,000
Day 1 30-09-19	2,50,000 (0.12)	20,000 (0.01)	2,70,000 (0.06)
Day 2 01-10-19	21,40,000 (1.00)	1,00,000 (0.05)	22,40,000 (0.53)
Day 3 03-10-19	26,20,000 (1.23)	2,20,000 (0.10)	28,40,000 (0.67)
Day 3 04-10-19	37,00,000 (1.74)	14,60,000 (0.69)	51,60,000 (1.21)

Company	P/B Ratio	P/E Ratio	RoNW	Total Revenue (Cr)
Sona Hi Sona Jwellers (Gujarat) Limited Current	1.18	43.19	3.98%	67.18
Ashapuri Gold Ornament Limited	0.79	102.34	1.10%	88.20
Palm Jewels Limited	0.72	111.50	1.83%	41.91
Shubhlaxmi Jewel Art Limited	10.79	135.62	14.85%	51.51
D.P. Abhushan Limited	1.88	8.44	19.83%	812.13
Moksh Ornaments Limited	0.84	5.37	15.16%	381.47

Started in 2001, Sona Hi Sona Jewellers (Gujarat) Limited is engaged in the trading business of jewellery & ornaments. The company operates from Millenium Plaza, Vastrapur, Ahmedabad, which is a well-known market for Jewellery and bullion. Sona Hi Sona Jewellers has three brands, namely, Freya, Jinash and Sona Hi Sona. The company operates primarily in Freya and Jinash brand name. Under the Freya brand, the company deals in antique Jewellery & ornaments. Jinash brand of the company is known for American Diamond (AD) Jewellery. The company designs the jewellery and get the job-work finished either in the house or from outside (3rd party). The product catalogue of the company includes Gold Jewellery studded with or without stones. It also includes variety in Gold Jewellery to match regional tastes. The company also offers customisation options to design Jewellery as per customer needs. Besides, the in-house brand Jewellery, Sona Hi Sona is also engaged in the wholesale trading business of other branded Jewellery. On the financial performance front, for the last three fiscals, Sona Hi Sona has posted turnover/net profits of Rs. 54.48 cr. / Rs. 0.06 cr. (FY17), Rs. 59.03 cr. / Rs. 0.19 cr. (FY18) and Rs. 67.18 cr. / Rs. 0.39 cr. cr. (FY19). For the last three fiscals, it has posted an average EPS of Rs. 0.38 and an average RoNW of 2.87%. The issue is priced at a P/BV of 1.18 on the basis of its NAV of Rs. 8.50 post-issue. If we attribute FY19 earnings on fully diluted equity post issue then asking price is at a P/E of around 43 against the industry average of 110 as per RHP. So issue looks aggressively priced and comparison with peers is shown in above table. On BRLM's front, for Fedex Securities Limited this is the 9th SME IPO. From last 8 IPOs, 1 opened below issue price and remaining all opened above issue price with 1% to 40% gains. As of now from last 8 IPOs, 4 are trading below or at issue price and remaining above. ( As on 27.09.19 ) Company has shown incremental good results, RoNW is 2.87% and issue looks highly priced. Business of jewellery and ornaments is very competitive. Performance of BRLM is poor. So we give 'AVOID' rating to SME IPO.

Fresh Issue

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Meeting incremental working capital requirements ( Rs 3.72 Cr )General Corporate Purpose ( Rs 0.45 Cr )
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Meeting incremental working capital requirements ( Rs 3.72 Cr )
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General Corporate Purpose ( Rs 0.45 Cr )
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All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decision
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Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published on this applicatio
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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
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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
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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.

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1 Comments

D
dsp rathore 30 Sep 2019, 07:55

gre market price

Period	Total Income	Total Expenses	Profit After Tax (PAT)
FY 19	67.18	66.65	0.39
FY 18	59.03	58.60	0.19
FY 17	54.48	54.39	0.06

Open Date	Sep 30, 2019
Close Date	Oct 04, 2019
Allotment Date	Oct 11, 2019
Listing Date	Oct 15, 2019
Face Value	₹ 10 Per Equity Share
Issue Price	₹ 10 Per Equity Share
Issue Size	Fresh Issue of Up to 45,00,000 with aggregating up to Rs 4.5/- Cr
Retail Min Lot	1 Lot (10,000 Shares - ₹ 1,00,000)
Lead Manager	Fedex Securities Private Limited

Sona Hi Sona Jewellers (Gujarat) Limited

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