Davin Sons IPO : GMP, Price, Date & Details

Davin Sons IPO-Complete Overview

Davin Sons IPO under the SME IPO category is a fixed price issue of Rs.8.78 crore (15.96 lac Shares) by Davin Sons Retail Limited, established in March 2022. The company is engaged in the manufacture and designing of a large variety of readymade garments including denim jeans, jackets, and shirts for other brands.

The company has two business verticals:

1. Manufacturing of readymade garments through job work.

2. Distribution of FMCG products.

The company has operations pan India across the states of Haryana, Delhi, Punjab, Arunachal Pradesh, Rajasthan, Gujarat, Bihar, and Chhattisgarh. Customers are distributed at a large distance over the area.

Davin IPO Overview

This Davin Sons IPO date is 02 January, and its ‘initial public offering’ will end on 06 January 2025. 

The Rs.8.78 crore new SME IPO  comprises a wholly fresh issue of 15.96 lac Shares.

This upcoming IPO date is on 02 January 2025. The Davin Sons IPO Price is Rs.55 for each Share. 

The expected IPO listing date is Thursday, 09 January 2025, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here

Company Financial

The company’s revenue grew by 242% and PAT increased by 190% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To provide funds for the capital expenditure required to acquire the warehouse.

• To partially fund the need for working capital.

• General corporate purposes.

Peers of Davin Sons IPO Ltd.

There are no listed companies in India, engaged in a similar business of the comparable size.

Evaluation

The Davin IPO share price is Rs.55 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.4.63 from the last year, the resulting P/E ratio is 11.88x.

Considering the weighted EPS of Rs.3.69 for the last three years, the P/E ratio is 14.89x.

Comparative Analysis With Listed Peers

No listed peers, hence no comparison is possible.

IPO's Strengths

• An extremely diversified product offering is featured.

• Real concentration on Quality and Innovation

• Promoter and management team with rich experience and proven track record in their respective industries.

• Does indeed mean cordial relations with their customers and Suppliers.

• Industry Diversification: A diversified business model safeguards the company from a slowdown related to the industry.

 

IPO’s Weaknesses

• Limited Operating History: A very limited operating history since incorporation as a going concern from a proprietorship business sells it directly for all practical purposes. Limited operational history makes it very difficult for investors to evaluate past performance and future prospects.

• Dependence on Specific Geographical Regions: The revenue from a large number of operations from a few states in India constitutes a very substantial portion of the revenue of the company. Any adverse occurrences in the states could damage revenues and operations.

• Reliance on Third-Party Manufacturers: Production by garment manufacturers is dependent upon third parties. Any disruptions in these facilities could lead to delays, higher costs, or harm to reputation.

• Working capital requirements: The main reliance on working capital by the Company would be for inventories and trade receivables. Thus, insufficient cash flows or delayed debtor payments will adversely affect compliance to financial performance.

• Regulatory Changes and Economic Conditions Impacts: Those government policies, the slowing economy, or a market downturn adversely affect business and stock performance. 

 

Davin Sons IPO GMP

Davin Sons IPO GMP today has not started as of 30 December 2024.

IPO Timetable (Tentative)

The IPO opening date is January 02, with allotment on January 07, refund initiation on January 08, and listing on January 09, 2025.

Davin Sons IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 15,96,000 Shares (Rs.8.78 Cr).

Davin Sons Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.110000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.220000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of Davin Sons Ltd.

• Mr Mohit Arora

• Mr Nohit Arora

• Mr Davinder Arora

• Mrs Lalita Rani

• Mrs Sonam Arora.
  
  

IPO Lead Managers

Navigant Corporate Advisors Ltd.

Dividend Policy

The company has not paid dividends since incorporation.

Conclusion

Davin Sons IPO is an opportunity for investors because of its huge growth in revenues and diversified business model. But a limited past of operation makes it risky along with dependence on third-party manufacturers. Thus, an investor should look well into the strengths and weaknesses of the company before applying.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here  to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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