Nanavati Ventures Limited IPO

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i. Nanavati Ventures is engaged in trading of diamonds majorly in Surat, Gujarat. They operations include sourcing of polished and uncut diamonds from primary and secondary source suppliers in the domestic market and sale of diamond to the retail and wholesale operations in Gujarat. They primarily sell diamonds to a customer base spread across domestic markets that includes various jewellery manufacturers, large department store chains, retail stores and wholesalers.

ii. The Company was engaged into the business of trading of diamonds since the day of incorporation. They procure the rough and unpolished diamonds in several sizes and shapes from the suppliers and then the processing and polishing of rough gemstone is done by skilled workers on job-work basis.

iii. The company have independent sales and distribution networks for our products. A substantial majority of their cut and polished diamonds are sold to diamond wholesalers and the jewellery manufacturers in the domestic markets. They procure diamond from suppliers at domestic level.

Competitive Strengths.

  • The established brand.
  • Management and Employee expertise.
  • Understand Customer Needs.
  • Existing distribution and sales networks in the domestic market and our geographical benefit.
  • Quality products.

Objects of the Nanavati Ventures Limited IPO:

The Objects of the Issue are: A. To meet the working capital requirements of the company B. To meet the Issue of Expenses C. General Corporate Purpose
DRHP of Nanavati Ventures Limited IPO
RHP of Nanavati Ventures Limited IPO

Nanavati Ventures Limited IPO Details:

Open Date: Apr 25 2022
Close Date: Apr 27 2022
Total Shares: 436,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 2.18 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 50 Per Equity Share
Listing At: BSE SME
Listing Date: May 06 2022

Promoters And Management:

i. Mr. Shreykumar Hasmukhbhai Sheth, aged 28 years, is the Chairman and Managing Director of the Company. He has completed his Bachelor of Commerce from Veer Narmad South Gujarat University, Gujarat. Currently, he is responsible for the overall operations of the Company. He is very much engaged in the field of Finance and Accounts with experience of 6 years as financial management personnel and knowledge of Compliance of laws related to corporates. He was the Chief Financial Officer for a publically listed Company, immediately before joining Nanavati Ventures Private Limited as a Chairman and Managing Director. ii. Mr. Hardikbhai Rajubhai Patel, aged 28 years, is the Non- Executive Independent Director of the Company. He has completed his Bachelor of Computer Application from Veer Narmad South Gujarat University, Gujarat. He is having 7 years of experience in the field of Information Technology. He has worked on numerous projects for an array of businesses and industries, helping them move forward in their developmental and growth goals. He continues to stay abreast of new trends in Technologies and development. He is also a Director in 1 (One) Public Limited Company named Starlineps Enterprises Limited. iii. Ms. Vaishnavi Hemantkumar Nanavati aged 24 years, is the Non-Executive Director of the Company. She has dynamic personality and experience in fund management and taxation matters. Further she has experience in trading policies preparation. She has 5 years of experience in the field of Diamond and Jewellery Industry. She has good quality background in Diamond and Jewellery Trading. Her key skills include practical application to produce a piece which is currently desirable in the marketplace

Financials of Nanavati Ventures Limited IPO:

Particulars (in Lakhs) Dec-21 Mar-21 Mar-20 Mar-19
Sales 1,042 1,124 595 55
Purchases of Stock in Trade 1,465 1,087 398 230
Change in Inventories -457 -0.10 185 -176
Employee Benefits Expense 23 16 4 1
Other Expenses 4 12 0.85 0.21
Operating Profit 7 9 7 0
OPM % 0.67% 0.81% 1.20% -0.38%
Other Income 7 8 0 0
Depreciation 1.40 1.29 0 0
Profit before tax 13 16 8 0.06
Total Tax Exps 3.00 3.81 2.34 0.02
Net Profit 9.98 11.97 5.39 0.03
NPM % 0.96% 1.06% 0.91% 0.05%
No. of shares 16.46 16.46 16.46 16.46
EPS 0.60 0.72 0.32 0.001
 

Comparison With Peers:

Name of the company EPS P/E Revenue (Rs. In Lakh)
Nanavati Ventures Limited 0.72 70 1124
Narbada Gems and Jewellery Ltd. 1.34 35 3,801
Tribhovandas Bhimji Zaveri Limited 6.48 10.95 134,199
Note: EPS and Revenue are taken for FY21 and P/E is calculated based on price on 21.04.2022 by taking EPS of FY21.

Recommendation on Nanavati Ventures Limited IPO:

Review and Recommendation of Nanavati Ventures Limited IPO by InvestorZone is 2/10 1. Company has shown good growth in the revenue. In FY19, they have only 55 lac Revenue, but in FY21 they clocked Revenue of 11 Crores. 2. Company has wafer thin margins. OPM is less than 1%. So, even if they scale the business, increasing OPM would be difficult. 3. Companies in the same business like Narbada Gems or Tribhovandas have not made money for investors in the last 3 years. So, sector is not good for investors. 4. Asking price is very high. They are asking P/E of 70x on the basis of FY21 earnings.

Lead Manager of Nanavati Ventures Limited IPO:

  1. First Overseas Capital Limited

Registrar of Nanavati Ventures Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Nanavati Ventures Limited S-414, OM Plaza, Adarsh App. Co. Op. Ho. Soc., Village: Vijalpor, Taluka: Jalalpore, Navsari 396445 Phone: +91 9316691337 Email: info@nventures.co.in Website: http://www.nventures.co.in/

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