Sona Hi Sona Jewellers (Gujarat) Ltd IPO

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(i) The company is into Job Work and Trading Business of Gold Jewellery and Ornaments. The Company gets the job work done from outside for its own designs.

(ii) The Company has three brands (i) Sona Hi Sona (ii) Freya and (iii) Jinansh of which they mainly operate through its two known brands*, viz., Freya and Jinansh. Under Brand Freya, they deal in antique Jewellery & ornaments and under Brand Jinansh, deals with American Diamond (AD) Jewellery, therein.

(iii) In the past 3 years, Total Revenue from operations of the Company was ₹ 5448.10 Lakhs in F.Y. 2016-17, ₹ 5903.26 Lakhs in F.Y. 2017–18 & ₹. 6717.98 Lakhs in F.Y. 2018-19 reflecting Net Profit after tax for the above mentioned periods as ₹ 6.18 lakhs, ₹ 18.65 Lakhs and ₹ 38.86 Lakhs respectively.

Objects of the Sona Hi Sona Jewellers (Gujarat) Ltd IPO:

1. Meeting incremental working capital requirements. 2. General corporate purposes.

Sona Hi Sona Jewellers (Gujarat) Ltd IPO Details:

Open Date: Sep 30 2019
Close Date: Oct 04 2019
Total Shares: 4,500,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed
Issue Size: 4.50 Cr.
Lot Size: 10000 Shares
Issue Price: ₹ 10 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 14 2019

Promoters And Management:

(i) Vijay Shah, aged 37 years, is the Promoter, Chairman and Managing Director of our Company. He has been Director of our Company since incorporation i.e. February 09, 2010.  He has completed his Higher Secondary Education from Gujarat Secondary Education Board, Gandhinagar, Gujarat. (ii) Alpaben Shah, aged 37 years, is the Promoter, Whole Time Director and Chief Financial Officer of the Company. She holds a degree in Bachelor of Commerce (Advanced Accounting and Auditing) from Gujarat University and she also holds a degree of Master of Commerce (Accountancy) from Gujarat University. She has been Director of our Company since Incorporation i.e. February 09, 2010

Financials of Sona Hi Sona Jewellers (Gujarat) Ltd IPO:

Year Revenue(Cr) EBITDA(Cr) OPM% PAT(Cr)  NPM% EPS
2017 54.88 0.9917 1.81% 0.06 0.11% 0.04
2018 59.03 1.63 2.76% 0.18 0.30% 0.11
2019 67.17 2.12 3.16% 0.38 0.57% 0.23

Recommendation on Sona Hi Sona Jewellers (Gujarat) Ltd IPO:

Review and Recommendation of InvestorZone is: 1/10 (i) The asking price is highly overvalued at P/E multiple of 44x. (ii) The company does not have any fixed assets on the book. (iii) The Employee benefits expense is on a declining trend. The negative sign for the company. (iv) They have only 9 employees and 1 shop which is too on rent. It reminds me of U H Javeri which has looted the investors.

Lead Manager of Sona Hi Sona Jewellers (Gujarat) Ltd IPO:

  1. Fedex Securities Limited

Registrar of Sona Hi Sona Jewellers (Gujarat) Ltd IPO:

  1. Link Intime India Private Limited

Bid Details of Sona Hi Sona Jewellers (Gujarat) Ltd IPO as on
04-Oct-2019 17:00:00 IST

Category No.of shares offered No. of shares bid
2,130,000 3,700,000
2,130,000 1,460,000
240,000 240,000
4,500,000 5,400,000
QIBs Yes
QIBs+HNIs Subscription 1.74X
Retail Subscription 0.69X
Total Subscription 1.21X

Discussion on Sona Hi Sona Jewellers (Gujarat) Ltd IPO: