Dev Labtech Venture Limited IPO

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i. Dev Labtech Venture is in business of manufacturing, marketing and sourcing of diamonds – natural and lab grown having wide application in Jewellery. They are equipped with all facilities to execute all types of manufacturing activities from rough natural stone to finished polished diamonds and from Seed to finished lab grown diamonds with various sizes, shapes, clarity and colours.

ii. The Company has recently started manufacturing of lab grown diamonds before that the company was engaged in processing of natural diamonds only. The Company has developed the skill and expertise with application of computer software and laser technology for mapping, designing, cutting, polishing with innovation & optimum output with less wastage in rough to natural polish diamonds.

iii. Further, they have also developed the In-house technical & Design team to make Laboratory grown diamonds. This technology and process has immense advantage to the company to produce the Lab grown diamonds with more purity & clarity and required sizes and shapes with much cheaper than natural diamonds. With the background and experience in natural diamonds they have developed in-house team with manufacturing facilities new and innovative lab grown diamonds. The technology known as – Microwave Plasma Chemical Vapour Disposition (MPCVD) to make lab grown Diamonds from Diamond Seed. This technology well tested and used in large scale in China. MPCVD is a pure and fast diamond deposition process, hence best suited for commercial uses.

iv. The company has developed the regular clients for supply of diamonds through their own sales team in Bhavnagar, Surat, Mumbai, and for exports. Dev Labtech Venture has established its own distribution and marketing network through e-mails, telephone, attending exhibitions, and connecting through social media platform. With its own network, company has developed the reputation and goodwill for timely supply of material to their reputed customers.

Competitive Strengths

i. Wide Varieties of our products
ii. Experienced Promoters
iii. Customer Satisfaction

 

Objects of the Dev Labtech Venture Limited IPO:

The Net Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet the Capital Expenditure Requirements ii. To Meet Working Capital Requirement iii. General Corporate Purpose iv. To Meet the Issue Expenses
DRHP of Dev Labtech Venture Limited IPO
RHP of Dev Labtech Venture Limited IPO

Dev Labtech Venture Limited IPO Details:

Open Date: Mar 17 2023
Close Date: Mar 21 2023
Total Shares: 2,200,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 11.22 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 29 2023

Promoters And Management:

Mr. Jerambhai Lavjibhai Donda, 60 years is Chairman cum Managing Director and also the Promoter of the Company. He holds Matriculation Degree. He was appointed on the Board on April 29, 1993 and further designated as the Chairman cum Managing Director of the Company on September 24, 2022 for a period of 5 years, liable to retire by rotation. He is having experience of 41 years in diamond industry. He has been instrumental in taking major policy decision of the Company. He is playing vital role in formulating business strategies and effective implementation of the same. He is responsible for the expansion and overall management of the business of the Company. His Vision to do business with ethics & to keep up with latest developments, Consistent Innovation in Technology and Management practices has helped him provide an overall growth for the company. Mr Jay Jerambhai Donda, aged 30 years, is the Whole Time Director, CFO and also the Promoter of the Company. He holds degree in Bachelor of Commerce (Financial Markets). He was originally appointed on the Board on April 18, 2011 and further designated as the Whole-Time Director of the Company on September 24, 2022 for a period of 5 years liable to retire by rotation. He is having of experience of 9 years in Diamond Industry. He has expertise in the field of Accounting, Finance, Banking, Market research, Financial Market Strategies and Sales & Marketing strategies in the Business Development of the Company. He looks after the finance related matters of company. Mrs. Dimple Jay Donda, aged 29 years is the Non-Executive Director of the Company. She holds degree in Bachelor of Science. She was originally appointed on the Board on June 03, 2022 liable to retire by rotation. She is having experience of 2 years in diamond industry.

Financials of Dev Labtech Venture Limited IPO:

Particulars ( In Lakhs ) 6MFY23 2022 2021 2020
Revenue from Operations 940 2685 1223 1178
Other Income 26 12 4 0
Total Revenue 966 2698 1228 1178
Cost of Material Consumed 341 2486 326 566
Purchases of Stock-in-Trade 192 0 502 10
Changes in Inventories 132 -156 22 88
Employee Benefits Expense 61 130 109 114
Other Expenses 136 170 234 361
EBITDA 102 68 32 37
Depreciation & Amortisation 26 8 10 15
Finance Cost 5 13 15 18
EBIT 76 59 21 22
OPM (%) 10.65% 2.53% 2.61% 3.20%
PBT 87 57 5 4
Taxes 23 13 1 4
PAT 64 43 3 0.04
NPM (%) 6.63% 1.62% 0.30% 0.00%
No.of Shares 82 82 82 82
EPS 0.77 0.52 0.04 0.0005
P/E 65.78 96.71 1155.69 105457.02

Comparison With Peers:

There are no listed companies in India which are engaged in the similar business.

Recommendation on Dev Labtech Venture Limited IPO:

Review and Recommendation of Dev Labtech Venture Limited IPO by IZ team is 4/10 1. Dev Labtech Venture is in business of manufacturing, marketing and sourcing of diamonds – natural and lab grown having wide application in Jewellery. 2. Till 2022, they were doing 100% business is Natural Diamond but in the first 6MFy23 they have started the business of Lab grown diamond also. In first 6MFy23, the Lab grown contribution is 38% and Natural diamond 62% in the total revenue. 3. The revenue has increased from 11 Crores in Fy20 to 27 Crores in Fy22. 4. The surprising part is the EBITDA margins. For the year Fy20, Fy21, and Fy22, the average EBITDA margins were closed to 3%, but in the first 6MFY23, it has increased to ~11%. That looks unimaginable. It seems some expenses may have been reduced to increase EBITDA and PAT to pump the valuation. 5. IPO is priced at 33x P/E on the basis of FY23 annaulized returns. The valuation is very high for the business where competition is very high.

Lead Manager of Dev Labtech Venture Limited IPO:

  1. Beeline Broking Limited

Registrar of Dev Labtech Venture Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Dev Labtech Venture Limited GF/22-23, Pattani Plaza, Dairy Road, Near Nilambaug Circle, Bhavnagar – 364002 Phone: +91-0278-2995027 Email: info@devlabtechventure.com Website: http://www.devlabtechventure.com/

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