Ashapuri Gold Ornament Limited IPO

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The Company is engaged in the business of wholesale trading of Jewellery. The Jewelries are manufactured on Job work basis at Ahmedabad and Rajkot. They are well known and trusted wholesaler of gold jewellery supplier, having a showroom of 2945 sq. feet on prime location of C.G. Road, Ahmedabad, the newly developed main market for buying Gold and Diamond Jewellery. The design of their products is done either in house or by third parties on their behalf and get the Jewellery manufactured on job work basis. They believe that their track record of almost two-decade attracts and signifies customers trust in the quality and purity of our products. Since the system of hallmarking is legally introduced, Company deals only in jewellery certified by Hallmark. They deal in antique Jewellery too.

During the year 2018-19, the company had entered in to partnership with Mrs. Kiran Soni and Mrs. Alka Jitendra Soni, partner of M/s. Blue-Onxy Lifestyle, carrying on a business of Branded Readymade Garments having exclusive showrooms at Ahmedabad, Surendranagar, Mehsana and Godhara. Our company is a major partner in this venture. The promoters have a plan to open multiple chains of showrooms of Branded Readymade Garments over a period of time.

The Company has only one showroom in Ahemdabad.

Objects of the Ashapuri Gold Ornament Limited IPO:

The Company is issuing total 5,750,000 shares at a Price of Rs. 51 per shares thereby garnering close to 29.32 Cr. The Objective of raising money is : 1. Establishment of jewelry manufacturing unit = 1.50 Cr 2. Investment in partnership firm = 1.80 Cr 3. Meeting working capital requirements = 18 Cr 4. General corporate purposes  = 7.25 Cr

Ashapuri Gold Ornament Limited IPO Details:

Open Date: Mar 13 2019
Close Date: Mar 18 2019
Total Shares: 5,750,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 29.33 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 28 2019

Promoters And Management:

1.  Mr. Saremal Soni, Chairman Cum Managing Director 2. Mr. Dinesh Soni, Managing Director

Financials of Ashapuri Gold Ornament Limited IPO:

Year Revenue(Cr) Expense(Cr) PAT(Lakh) Shares(Lakh) EPS P/E(Post Issue)
2016 55.62 55.53 6 0.617 9.72 242
2017 37.29 37.24 3 1 3
2018 46.92 46.82 7 1 7
8MFY19 49.51 49.08 31 1 31
Post Issue 212.93 0.21

Comparison With Peers:

The company has shown D P Abhushan Limited and Moksha Ornament Limited as its peer which are trading at P/E of 10 and 3 respectively.

Recommendation on Ashapuri Gold Ornament Limited IPO:

Review and Recommendation of Ashapuri Gold Ornament Limited IPO from IZ team are- 1/10. [ The Company with only one showroom is coming up with an IPO of 30 Cr. The asking P/E is close to 242  while peers are trading at P/E of less than 10. ]

Lead Manager of Ashapuri Gold Ornament Limited IPO:

  1. Fedex Securities Limited

Registrar of Ashapuri Gold Ornament Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Ashapuri Gold Ornament Limited Website: www.ashapurigold.com ; E-Mail: info@ashapurigold.com Corporate Identification Number U36910GJ2008PLC054222

Bid Details of Ashapuri Gold Ornament Limited IPO as on
18 Mar 2019 | 11:58:04 PM

Category No.of shares offered No. of shares bid
2,726,000 5,648,000
2,726,000 694,000
298,000 298,000
5,750,000 6,640,000
QIBs No
QIBs+HNIs Subscription 2.07X
Retail Subscription 0.25X
Total Subscription 1.16X

Discussion on Ashapuri Gold Ornament Limited IPO: