Shoora Designs Limited IPO - Review, Valuation & Todays GMP

Shoora Designs Limited - Complete Overview

Established in 2021, Shoora Designs Limited initially operated within the realms of the 'Textiles & Apparel' and 'Apparel & Accessories industries. In the subsequent year, the company revised its objectives to encompass the manufacturing and trading of diamonds and jewellery.

The company follows a comprehensive approach, procuring rough diamonds from suppliers, internally strategizing and mapping their utilization, and outsourcing cleaving, laser cutting, and polishing processes to local job workers within Surat's domestic market.

The primary clientele of the company predominantly comprises wholesalers and retailers, with a significant business focus in Surat, Gujarat, and Mumbai. Revenue generated from diamond and jewellery sales is derived through both offline and online platforms.

For the fiscal year ending March 31, 2023, the revenue from operations amounted to 10,558.97 Thousand units, while for the preceding financial year ending March 31, 2022, it stood at 1,625.78 Thousand units.

 

What does the company do?

Shoora Designs Limited is involved in the manufacturing and trading of diamonds and jewellery.

 

 

IPO Overview

The upcoming IPO of Shoora Designs Limited is set to be available for subscription from August 17th to August 21st, 2023. This SME IPO is anticipated to be listed on August 29th, 2023, at BSE SME.

The IPO details comprise a share price of Rs.48 at a face value of Rs.10 per share. The total issue size encompasses 424,000 shares, aggregating to Rs.2.03 Crores.

Of the total issue, the company has allocated 50% for other investors and an equal 50% for retail investors.

 

Shoora Designs Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	17 August 2023
IPO Closing Date	21 August 2023
IPO Allotment Date	24 August 2023
Refund initiation	25 August 2023
IPO Listing Date	29 August 2023

 

Shoora Designs Limited IPO Details

IPO Opening & Closing Date	17 August to 21 August 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 48 per share
Lot Size	3000 Shares
Price of 1 Lot	Rs. 144,000
Issue Size	424,000 Shares (aggregating up to Rs. 2.03 Cr)
Offer for Sale	NA
Fresh Issue	424,000 Shares (aggregating up to Rs. 2.03 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Limited

 

Shoora Designs Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Shoora Designs Limited IPO Reservation

Other Investors Portion	50%
Retail Investors Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	0.75	15.03	168.99
Total Revenue	-	16.26	210.61
PAT	-0.50	3.91	11.46
Net Worth	0.50	4.41	158.59
Reserve & Surplus	-0.50	3.41	51.02
Total Borrowings	-	-	0.30

 

Objective of the Issue

The company aims to allocate the funds to meet the following needs:

• Address working capital needs.
• Support general corporate objectives.

 

Promoters and Management of Shoora Designs Limited

The company's promoters included Mr Satish K Kansodariya, Mrs Sejalben Satish Kansodariya, and Mr Rajeshbhai Labhubhai Mer.

Pre-issue Promoters Holding	100.00%
Post-issue Promoters Holding	71.77%

 

Peer Comparison

The following are the listed peers as per the Shoora Designs Limited DRHP:

Company Name	Revenue from operations for Financial Year 2023 (Rs. in ‘000)	Diluted EPS (Rs.)	P/E Ratio
Shoora Designs Limited	21,059.46	1.34	35.82
Ashapuri Gold Ornament Limited	15,80,063.00	0.71	101.39
D.P. Abhushan Limited	1,97,51,202.00	20.33	14.44
Starlineps Enterprises Limited	1,99,938.00	0.14	777.14
Veeram Securities Limited	1,86,820.00	0.24	31.38

 

IPO's Valuations

Based on the provided data, where the company's EPS stands at Rs.1.34 per share and the P/E ratio is 35.82, the IPO valuation suggests a share price of approximately Rs.48.

 

Dividend Policy

The company has not distributed dividends in past, it may implement a structured dividend policy in the future, based upon the company's financial performance.

 

IPO's Strengths

• Established distribution and sales networks.
• Efficient polishing processes.
• Sustainable customer base.
• Experienced management team.

 

IPO Weaknesses

• The company possesses a limited operational history.
• Income and sales of the company experience seasonal fluctuations, resulting in reduced earnings during peak periods.
• Initially recognized as a start-up in the 'Textiles and Apparel Industry' and 'Apparel and Accessories Sector,' the company has not sought similar recognition for the 'Gems and Jewelry Industry' following a shift in its business focus.
• The company has procured unsecured loans from Promoters and/or other parties, which are subject to potential recall.
• Past instances of delayed or incorrect filings with specific Regulatory Authorities have occurred.
• The company requires requisite approvals and licenses as part of its standard business operations.
• The Company operates within a competitive market with other manufacturers.
• The Promoters' average cost of acquiring Equity Shares might be lower than the Issue Price.
• The company had experienced Negative cash flows in previous years.
• The issuance of Equity Shares at a price potentially lower than the Issue Price has taken place within the last 12 months.

 

 

IPO GMP Today

Shoora Designs IPO GMP is not yet available.

 

Conclusion

Shoora Designs operates within fiercely competitive sectors and has previously experienced negative cash flows. The company's ability to sustain the same growth as in FY 23 is uncertain. Hence, potential investors should thoroughly assess all factors before considering participation in the IPO.

 

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

 

 

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