VARYAA CREATIONS (BSE SME)
Apr 22, 2024 - Apr 25, 2024
| Price | ₹150 - ₹150 |
| Premium | ₹0 |
|---|---|
| Lot size | 1000 |
| Allotment | Apr 26, 2024 |
| Listing | Apr 30, 2024 |
| Category | Lot(s) | Qty | Amount | Reserved |
|---|---|---|---|---|
| Retail | 1 | 1000 | 150000 | 635 |
| HNI | 2 | 2000 | 300000 | 635 |
Last updated on 25 Apr 2024 | 05:57:05 PM
| Category | Offered | Applied | Times |
|---|---|---|---|
| HNIs | 635000 | 760000 | 1.2 |
| Retail | 635000 | 3864000 | 6.09 |
| Total | 1270000 | 4624000 | 3.64 |
| HNI Interest Cost Per Share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹0.24 | @8% ₹0.28 | @9% ₹0.31 | @10% ₹0.35 | @11% ₹0.38 | @12% ₹0.41 |
IPO Reservation
| Investor Category | Shares Offered | No. of Shares |
|---|---|---|
| Retail | 47.39% | 635000 |
| Other | 47.39% | 635000 |
| Market Maker | 5.22% | 70000 |
| Total No. of Shares | 100.0% | 1340000 |
Varyaa Creations Limited, originally incorporated as Kalgi India Private Limited on July 14, 2005, underwent name changes and conversions over the years, becoming Varyaa Creations Limited on August 18, 2023, under the Companies Act, 2013. The company, headquartered in Mumbai, initially focused on wholesale trading of gold, silver, precious stones, and semi-precious stones, with recent expansions into jewelry manufacturing and sales. Jewelry production is outsourced to job workers in Mumbai. Revenue is primarily generated through wholesale trading and jewelry sales, facilitated through offline channels at the registered office and online platform.
IPO Details
| Issue Size | 13,40,000 Equity Shares aggregating up to Rs 20.10 cr |
| Fresh Issue | 13,40,000 Equity Shares aggregating up to Rs 20.10 cr |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 34,50,000 Equity Shares |
| Share holding post issue | 47,90,000 Equity Shares |
| Market Maker portion |
70,000 Equity Shares Svcm Securities |
Key Performance Indicators
| KPI | Dec-23 | Mar-23 | Mar-22 |
|---|---|---|---|
| ROE | 85.52% | 132.75% | -297.75% |
| ROCE | 114.57% | 190.12% | 267.65% |
| RONW | 85.52% | 132.75% | -297.75% |
| EPS (basic & Diluted) |
10.18 | 2.29 | 1.68 |
| P/BV | 12.61 | ||
|
P/E (Pre IPO) |
65.56 |
Financial Information (Restated)
| Period | Dec-23 | Mar-23 | Mar-22 | Mar-21 |
|---|---|---|---|---|
| Assets | 1,049.17 | 2,000.55 | 143.78 | 218.32 |
| Revenue | 1,762.49 | 538.03 | 253.13 | 12.05 |
| Profit After Tax | 351.11 | 78.93 | 57.98 | -13.06 |
| Net Worth | 410.56 | 59.45 | -19.47 | -77.46 |
| Reserve & Surplus | 65.56 | 44.45 | -34.47 | -92.46 |
| Total Borrowing | - | - | 44.81 | 283.82 |
| Amount in Lakhs | ||||
Strength Factors
Established Brand: The company boasts an established brand, indicating a solid reputation and recognition within its industry. This brand recognition can lead to increased customer trust, loyalty, and market share, providing a competitive advantage over newer entrants.
Understanding of Customer Preferences: With a strong understanding of customer preferences, the company is well-positioned to anticipate market trends and tailor its products or services to meet the evolving needs of its target audience. This customer-centric approach enhances customer satisfaction, fosters brand loyalty, and drives long-term profitability.
Rich Domain Experience of Promoters: The rich domain experience of the company's promoters brings invaluable industry insights, networks, and expertise to the table. Leveraging their deep understanding of the sector, the promoters can navigate challenges, make informed strategic decisions, and seize opportunities for growth and expansion, strengthening the company's competitive position in the market.
Risk Factors
Legal Proceedings Involving Promoters: The outstanding legal proceedings involving the promoters and promoter entities pose a significant risk to the company. These legal issues could result in financial liabilities, damage to the company's reputation, and distractions for management, potentially affecting business operations, investor confidence, and overall financial performance.
Supply Chain Risks: The non-availability or high cost of quality gold bullion, silver, diamonds, and other precious and semi-precious stones pose a significant risk to the company's operations. Any disruptions or fluctuations in the supply chain of these essential raw materials could lead to production delays, increased costs, and difficulties in fulfilling customer orders, ultimately impacting the company's revenue and financial condition.
History of Net Losses: The Company’s history of net losses and the anticipation of continued losses in the future represent a significant risk factor. Persistent losses can strain the company's financial resources, limit its ability to invest in growth initiatives, and erode shareholder confidence. Moreover, sustained losses may raise concerns among creditors and investors, potentially leading to liquidity issues, difficulties in obtaining financing, and constraints on the company's strategic flexibility.