Eighty Jewellers Limited IPO

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i. Eighty Jewellers is part of the Anopchand Tilokchand group which they believe to be a well-known name and established brand in the Jewellery sector since many decades in and around Chhattisgarh. They are currently engaged as a master franchisee of Anopchand Tilokchand Jewellers Private Limited (“ATJPL”) and involved in the trading of various jewelleries, ornaments, watches and luxury articles made out of gold, silver, diamonds and platinum studded with precious and semi-precious stones under the B2B model in the name “Anopchand Tilokchand Jewellers”.

ii. Their product portfolio includes rings, earrings, armlet, pendants, gajrahs, nose rings, bracelets, chains, necklaces, bangles, watches, luxury items and other wedding jewellery. Their products cater to the customers across high-end, mid-market and value market segments.

iii. Currently, they sell all their jewellery and related products to

  • a sub-franchisee store at Korba, Chhattisgarh, and
  • a retail store at Bilaspur, Chhattisgarh

iv. Eighty Jewellers is currently operating on a B2B business Model and offer its customers a broad variety of jewelleries, ornaments, watches and luxury articles made out of gold, silver, diamonds and platinum studded with precious and semi-precious stones in order to cater to both regional and modern tastes. They also deal in diamond and silver jewellery and ornaments.

Competitive Strengths:

  1. Use of the established Brand name.
  2. Cordial relationship with our customers.
  3. Experience of our Promoters.
  4. Design, Innovation and Product range.
  5. Prime Location of the Showroom.

Objects of the Eighty Jewellers Limited IPO:

The company  intend to utilize the proceeds of the Issue to meet the following objects: - 1. To meet Working Capital requirements 2. General Corporate Purpose 3. To meet issue expenses
DRHP of Eighty Jewellers Limited IPO

Eighty Jewellers Limited IPO Details:

Open Date: Mar 31 2022
Close Date: Apr 05 2022
Total Shares: 2,700,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 11.07 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 41 Per Equity Share
Listing At: BSE SME

Promoters And Management:

i. Mr. Nikesh Bardia, aged 38 years, is the Promoter & Managing Director of the Company. He was originally appointed on the board on September 15, 2010 and further Re-designated as Managing Director w.e.f December 6, 2021 vide EGM dated December 6, 2021. He has acquired Post Graduate Diploma in Management (PGDM) from Institute of Management Development & Research, Pune & Diamond Graduate Diploma from The International Diamond Laboratories. He has an experience of around 17 years in the field of Diamond and Jewellery. 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 leadership abilities have been instrumental in leading the core team of the Company. ii. Mr. Nitin Bardia, aged 41 years, is the Promoter & Whole Time Director of the Company. He was originally appointed on the board on September 15, 2010 and further Re-designated as Whole Time Director w.e.f December 6, 2021 vide EGM dated December 6, 2021. He has completed his graduation from Pt. Ravishankar Shukla University Raipur and holds Master’s Degree in Business Administration from Middlesex University, London UK. He has an experience of around 20 years in the field of Diamond and Jewellery. He plays pivotal role in business development, sales, and finance functions of the Company. iii. Mrs. Ankita Bardia aged 33 years, is the Non-Executive Director of the Company. She was appointed on the board vide AGM dated October 12, 2021. She looks after the Administration and Human Resources department of the Company

Financials of Eighty Jewellers Limited IPO:

Particulars (in Lakhs) Sep-21 Mar-21 Mar-20 Mar-19
Sales 4,414 7,831 6,453 8,159
Purchase of Material 3,948 6,488 6,061 6,650
Change in Inventories 170 336 -398 789
Employee Benefits Expense 57 99 85 56
Other Expenses 90 287 347 384
Operating Profit 149 621 358 280
OPM % 3.38% 7.93% 5.55% 3.43%
Other Income 22 38 38 33
Interest 55 143 157 131
Depreciation 7 19 28 42
Profit before tax 110 497 210 141
Total Tax Exps 27 120 55 40
Net Profit 83 377 155 100
NPM % 1.88% 4.81% 2.40% 1.23%
No. of shares 101.99 101.99 101.99 101.99

Comparison With Peers:

Name of the Company Face Value EPS PE RoNW Book Value Sales (In Lakhs) PAT (In Lakhs)
Eighty Jewellers Limited 10 5.03 8.15 40.58% 12.39 7,831 377
Patdiam Jewellery Ltd 10 6.45 11.47 7.12% 90.56 6,756 278
Radhika Jeweltech Ltd 10 10.8 16.7 13.50% 69.3 13,700 2,600
DP Abhushan Ltd 10 17.7 21 32.90% 50.5 1,21,500 2,700
PC Jewellers Ltd 10 -2.87 - 1.46% 89 2,66,900 6,100
Kalyan Jewellers India Ltd 10 2.2 27.8 -0.25% 27.9 8,57,300 -600

Recommendation on Eighty Jewellers Limited IPO:

Review and Recommendation of Eighty Jewellers Limited IPO by InvestorZone is 2/10 1. There is no growth in the company from last 3 years. Top-line is flat. 2. Without growth it is very difficult to increase the bottomline but company's PAT has increased from 1 Crores to 3.77 Crores. So, it may appears that books are managed before IPO. 3. Jewellery companies generally don't give good returns in the longer term. 4. P/E is ~21x based on FY22 annualised earnings, which looks fully-priced in.

Lead Manager of Eighty Jewellers Limited IPO:

  1. Hem Securities Limited

Registrar of Eighty Jewellers Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Eighty Jewellers Limited Anup Plaza Sadar Bazar, Raipur, Chhattisgarh, 492001 Phone: +91-0771-2234737 Email: info@eightyjewels.in Website: https://eightyjewels.in/

Discussion on Eighty Jewellers Limited IPO:

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