Penta Gold Limited IPO

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(i) We are a retailer, wholesaler and exporter of gold jewellery. We have a retail outlet in Mumbai. We also export our products (gold jewellery studded with diamond) to overseas buyers. We also sell our products to wholesalers
domestically.

(ii) Our Company was awarded the India SME 100 Award for being SME Achievers of 2015-16 for scoring in the Top 100 among 41832 nominations by India SME Forum in the overall evaluation of financial and non financial parameters.

(iii) We primarily sell gold jewellery i.e. Chains, Rings, Bangles, Necklace, Mangalsutra, Bracelet, Earrings and other jewellery studded or non-studded with pearls, diamonds, American diamonds and other precious stones. Further, we also have product line of antique and kundan Jewellery. Further, we also have variety of Italian jewellery products which is famous for its machine designs and light weighted jewellery.

(iv) We offer our Jewellery across different price ranges from low to high to cater on large scale customer base. We help our customers to choose the best suited product according to latest trends and fashion. We majorly procure required gold from various banks. We also procure gold and precious stones from local markets. We are located in jewellery hub of Mumbai which give us an added advantage  in terms of procurement.

(v) Our products are primarily exported to countries such as the U.A.E and USA. We have received the registration as “One Star Export House” from Directorate General of Foreign Trade, Ministry of Commerce & Industry, Government of India.

Penta Gold Limited IPO Stock Quote & Charts

37.00

-0.27%

  • Open: 37.00
  • High - Low: 37.00 - 37.00
  • Previous Close: 37.10
  • Total Traded Volume: 192000
  • Updated On: 21-May-2018

Objects of the Issue:

The company is coming up with an IPO to issue 36,00,000 shares at a price of 37 thereby raising 13.32 cr. The utilization of the fund as per prospectus is: 1. Augmenting additional working capital requirements= 10.98 cr 2. General Corporate Expense= 1.882 cr 3. Meeting Issue Expenses= 45 lakh

Listing Date: Apr 25 2018

Issue Details:

Open Date: Mar 23 2018
Close Date: Mar 27 2018
Total Shares: 36,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 13.32 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 37 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 25 2018

Promoters And Management:

(i) Ketan M. Shroff, aged 46 years, is the Managing Director of our Company. He is a resident Indian national. He is an under graduate. He has experience of over 25 years in the bullion market, gold jewellery business, commodities, FOREX and precious metals. He is known in giving updates in relation to international economy impacts on the Gold Industry to various journals and news papers. He is the National Joint Secretary of the India Bullion and Jewellers Association limited. He has been on our Board since the incorporation of our Company. He is entrusted with the responsibility of looking after the overall management and operations, planning and implementation of the strategies of our Company. (ii) Dipti Ketan Shroff, aged 45 years, is a Non Executive Director of our Company. She holds a bachelor’s degree in Commerce from Mumbai University. She has also completed MCX–DICM (Diploma in Commodities Market) from Welingkar Institute of Management Development & Research, Mumbai and Certificate Programme in Capital Markets from Jamnalal Bajaj Institute of Management Studies, Mumbai University. She has experience of over 13 years in gold & bullion industry and equity market. She provides overall operations and administrative guidance to our Company. She has been on the Board of our Company since March 2, 2017.

Capital Structure:

Authorized Share Capital ( 1,50,00,000 shares at FV@10) 15 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (91,25,000 Shares at FV@10) 9.1250 cr
Present Issue (36,00,000 Shares at FV@10) 3.6 cr
Reservation for Market Maker (1,80,000 Shares at FV@10) 18 lakh
Net Issue to Public (36,00,000-1,80,000=  34,20,000 Shares) 3.42 cr
Retail Quota(<2 Lkah)[17,10,000  Shares] 50%
HNI & QIB Quota(>2 Lakh)[17,10,000 Shares] 50%
Paid Up Share Capital after the issue 12.725  cr

Company Financials:

 1. Balance Sheet Snippet[ All Calculation for FY 16-17]
       (i) Shareholders’ Fund[Equity] Value 1575.37 lakh
      (ii) Asset 7660.11 lakh
      (iii) Liability 6084.73 lakh
      (iv) Debt/Equity 3.9(high)
      (v)  Net Worth(Asset- Liability) 1575.37 lakh
     (vi)  RONW(PAT/Net Worth) 10%
     (vii) P/B 2.14(reasonable)
2. Profit n Loss Snippet (i) The Revenue of the company is inconsistent in last 4 years expect for the FY ending 31.03.2014 when it was quadrupled. (ii) PAT of the company was growing at CAGR of 46% till FY ending 31.03.2016 but company's profit has gone down by 5% in FY ending 31.03.2017 on account of increased " Finance Cost". (iii)Margins(PBT/Reveune): .31 to 1% in last 4 years. The company has very low margin business. (iv) Annualized EPS(post issue)= 1.32 (v) Annualized P/E(post issue)=28 at the cutoff price of 37 3. Cash Flow Statement
    Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation -787.04 -2150.79 -328.04 -317.67 -530.15
(ii) Net Cash Generated from Investment 234.21 126.72 150.14 69.99 1.77
(iii) Net Cash Generated from Financing Activity 871.88 470.07 350.37 1091.77 1477.82
(iv) Total[ (i)+(ii)+(iii) ] 319.05 -1554 172.47 844.09 949.44
(v) Cash and Cash Equivalents at the Beginning of the Year 272.71 1826.71 1653.84 949.43 0
(vi) Cash and Cash Equivalents at the end of the Year 591.76 272.71 1826.31 1793.52 949.44
 

Comparison With Peers:

Name of the Company FV EPS PE RONW
Penta Gold Limited 10 1.32 28 11%
Vaibhav Global Ltd 10 11.9 56.5 5%
Renaissance Jewellery Ltd 10 17.1 29.6 7%
DP Abhushan Ltd 10 2.2 29.8 26%

Recommendation:

The issue seems to be fully priced at a PE of 28. The current sentiments of the market is against the Jewelry and diamond sector due to recent scam in of Nirav Modi. Rating:4 /10. 1-5: Fair 5-7: Good 7-10: Excellent

Company Address:

Penta Gold Ltd 2224 Manek Chowk, Opp. Old Share Bazar, Ahmedabad - 380001 Phone: + 91-79-22153555 Fax: +91-79-22153555 Email: info@pentagold.in Website: www.pentagold.in

Bid Details as on 27-Mar-2018 17:30:00 IST

Category No.of shares offered No. of shares bid
1,800,000 1,752,000
1,800,000 279,000
- -
3,600,000 2,031,000
QIBs No
QIBs+HNIs Subscription 0.97X
Retail Subscription 0.15X
Total Subscription 0.56X

    Penta gold promoter r fighting out with sebi. to Sail their Sme ipo ..Result will b known by Next week…

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