Varyaa Creations Ltd IPO: Review, Valuation, Date & GMP

Varyaa Creations Limited IPO  - Complete Overview

Established in 2005, Varyaa Creations Limited operates in the wholesale trading of gold, silver, precious stones, and semi-precious stones. 

The company's jewelry is distributed through both B2B and B2C platforms, with offerings including customized jewelry for customers. 

Its diverse product portfolio encompasses necklaces, earrings, tops, rings, bracelets, bangles, gemstones, diamonds, lab-grown diamonds, and pearls. 

As of September 30, 2023, the company has generated revenue totaling Rs. 1,762.49 lakhs.

Varyaa Creations Limited IPO Overview

Varyaa Creations Limited IPO date is slated to be open for subscription from April 22, 2024, to April 25, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Varyaa Creations Limited IPO price is fixed at Rs.150 per share. 

The total issue size of this IPO amounts to Rs.20.10 Cr. The company has allocated shares 50% to retail investors, 50% to other investors.

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Varyaa Creations Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has also increased.

(Amount in Lakhs)

Product wise and Customer wise sales break up

(Amount in Lakhs)

 

The Objective of the Issue

The company intends to utilize the net proceeds from the issue for the following purposes:

1. Financing the establishment of a new showroom, covering:

   a) Capital expenditure costs associated with the proposed new showroom.

   b) Purchase of inventory for the proposed new showroom.

2. General Corporate Purposes.

Peers of Varyaa Creations Limited IPO

 

Evaluation

The IPO is priced within the range of Rs.150 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 52.62 from the last year, the resulting P/E ratio is 2.85x.

• Taking into account the weighted EPS of Rs 37.75 for the last three years, the P/E ratio amounts to 3.97x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 9.79x.

As a result, the IPO price range, with a P/E ratio ranging from 2.85x to 3.97x, seems fully priced to the industry average of 9.79x.

IPO's Strengths 

• Established brand with an extensive product range.

• Well-established relationships with suppliers.

• Strong grasp of customer preferences.

• Promoters possess rich domain experience.
  
  

IPO weaknesses 

• There are ongoing legal proceedings involving the Promoter and Promoter Entities of the company.

• The company has a track record of net losses.

• The jewelry designs of the company are not registered and are susceptible to replication by others.

• Strong competition in the jewelry sector poses a risk of decreasing the company's market share.

• The business may face adverse effects due to the non-availability or high costs of quality gold bullion, silver, diamonds, and other precious and semi-precious stones.

IPO GMP Today

The latest GMP of Varyaa Creations Limited is not yet avaliable.

Varyaa Creations Limited IPO timetable (Tentative)

Varyaa Creations Limited IPO is scheduled from April 22 to April 25, 2024, with allotment on April 26, refund initiation onApril 29, and listing on April 30, 2024.

Varyaa Creations Limited IPO Details 

Varyaa Creations Limited IPO, with a face value of Rs.10 per share, opens on April 22 and closes on April 25, 2024, offering 1,340,000 shares at Rs.150 per share, with a lot size of 1000 shares, aiming to raise Rs. 20.10 Cr, and will be listed on BSE SME.

Varyaa Creations Limited IPO Lot Details 

For Varyaa Creations Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1000 shares) at Rs.150,000 while for HNI investors, the minimum investment is 2 lots (2000 shares) at Rs.300,000.

Varyaa Creations Limited IPO Reservation

Promoters and Management of Varyaa Creations Limited

• Mrs. Pooja Vineet Naheta 

• Mrs. Sarika Amit Naheta

 

Varyaa Creations Limited IPO Lead Managers

• Inventure Merchant Banker Services Pvt Ltd
  
  

Dividend Policy

The company has not declared or paid any dividends on equity shares in the past financial years.

Conclusion

The company operates within a competitive and fragmented sector, having incurred net losses in the past and lacking its own manufacturing unit. Investors are advised to carefully evaluate all factors before investing in the upcoming IPO to earn potential gains.

 

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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