Davin Sons Retail Limited IPO

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Davin Sons Retail Limited operates under two primary business verticals are manufacturing of Readymade Garments and Utilizing a job-work-based model or distribution of FMCG Products like Catering to large-scale FMCG brands in India, distributing branded packaged foods, non-alcoholic energy drinks, chips, and other products.

Garment Manufacturing Operations

The company specializes in the production and design of readymade garments, offering a diverse range of jeans, denim jackets, and shirts for other brands. The manufacturing process involves the following steps:
i. Cutting                            ii. Stitching                       iii. Sewing                       iv. Finishing
v. Inspection                     vi. Packing

While the company outsources manufacturing on a job-work basis to third-party contractors, it maintains strict control over the specifications, including designs, patterns, quality, and fabric. The finished products, meeting these technical specifications, are delivered to the company’s warehouse. However, the company does not have formal job-work agreements in place with its contractors.

FMCG Distribution Operations

The company expanded its objectives to include distribution services for large FMCG companies in India. The company focuses on distributing:
i. Branded packaged foods                    ii. Non-alcoholic energy drinks                      iii. Snacks like chips

This vertical allows the company to serve a broader customer base and diversify its revenue streams.

By combining its expertise in garment manufacturing and FMCG distribution, Davin Sons Retail Limited has positioned itself as a versatile player in the consumer goods and apparel sectors. The company’s adaptability and commitment to quality continue to drive its growth and reputation in the market.

Objects of the Davin Sons Retail Limited IPO:

The company proposes to utilize the net proceeds from the Issue towards funding the following objects and achieve the benefits of listing the equity shares on the BSE SME. i. To finance the Capital Expenditure for the purchase of the Warehouse ii. To part finance the requirement of Working Capital iii. To meet General corporate purposes;
DRHP of Davin Sons Retail Limited IPO
RHP of Davin Sons Retail Limited IPO

Davin Sons Retail Limited IPO Details:

Open Date: Jan 02 2025
Close Date: Jan 06 2025
Total Shares: 15,96,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 8.78 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 55 Per Equity Share
Listing At: BSE SME
Listing Date: Jan 09 2025

Promoters And Management:

Mr. Mohit Arora, 38, is the Promoter, Chairman, and Managing Director of the Company, serving on the Board since its incorporation on February 8, 2022. With over 10 years of experience in the garment and textile industry, he began his entrepreneurial journey as the proprietor of M/s Jesus Shirts in 2012. He oversees routine operations and guides the Company in growth strategies, leveraging his expertise in distribution, networking, and attention to detail. Mr. Nohit Arora, 34, is the Promoter and Whole-Time Director of the Company, associated since its incorporation on February 8, 2022. With over 10 years of experience in the garment and textile industry, he began in clothing distribution through his proprietary concern in 2012 and joined M/s Jesus Shirts in 2018 alongside Mr. Mohit Arora. His expertise in textiles, distribution, and networking drives operational efficiency and growth strategies. He holds 5,84,130 equity shares, representing 15.93% of the Company's paid-up equity share capital. Ms. Sonam Arora, 35, is the Non-Executive Director of the Company, serving on the Board since May 15, 2023. A graduate in Arts, she brings knowledge and experience in marketing as a freelancer, providing strategic marketing advice and guidance to the Board.

Financials of Davin Sons Retail Limited IPO:

In Cr.
Particulars Sep 30, 2024 March 31, 2024 March 31, 2023
Revenue from Operations 6.28 13.39 3.83
EBITDA 1.07 2.33 0.69
EBITDA Margins 17.03% 17.40% 18.01%
PAT 0.73 1.64 0.56
PAT Margins 11.61% 12.25% 14.47%
CFOA (0.86) (1.32) (00)

Comparison With Peers:

As per RHP no listed peers.

Recommendation on Davin Sons Retail Limited IPO:

Review and Recommendation of Davin Sons Retail IPO by team IZ is 3/10.

Lead Manager of Davin Sons Retail Limited IPO:

  1. Navigant Corporate Advisors Limited

Registrar of Davin Sons Retail Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Davin Sons Retail Limited 609, Sixth Floor, Road No. 44, Pitampura P.P. City Centre Plot No. 3,Road No. 44, Pitampura Rani Bagh-, North West Delhi -110034 Phone: + 91-11- 4909212 Email: info@davinsonsretail.com Website: http://www.davinsonsretail.com/

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