U.H. Zaveri Limited IPO

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U.H. Zaveri Limited IPO

(i) The company was originally incorporated as U. H. Zaveri Private Limited on August 28, 2017 under the Companies Act, 2013 vide certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Thereafter, Our Company was converted in to a public limited company pursuant to a special resolution passed by our shareholders at the EGM held on August 31,2017 and consequently name was changed to “U. H. Zaveri Limited” (UHZL) vide fresh certificate of incorporation dated September 13, 2017 issued by Registrar of Companies, Gujarat, Dadra and Nagar Havelli.

(ii) Our company has been incorporated as a gems & jewellery company. Our business operations are divided into two divisions. One division of our business operations is into wholesale and retail of jewellery and the second division is into trading of jewellery. Our company mainly sells gold jewellery and marginal percentage of our revenue is earned through silver jewelry and other kinds of jewellery and utensils. Our company does not manufacture its own jewelry and hence, the making of our jewellery is outsourced. However, the jewellery sold by us is either designed in-house or through 3-D jewellery designer or by third-party designers or we purchase ready to sell jewellery directly from manufacturers.

 

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U.H. Zaveri Limited IPO Stock Quote & Charts

13.75

-1.79%

  • Open: 13.75
  • High - Low: 13.75 - 13.75
  • Previous Close: 14.00
  • Total Traded Volume: 6000
  • Updated On: 06-Sep-2018

Objects of the U.H. Zaveri Limited IPO:

Objective of

U.H. Zaveri Limited IPO

are: 1. To meet working capital requirement, and 2. To meet the expenses of the Issue

U.H. Zaveri Limited IPO Details:

Open Date: May 08 2018
Close Date: May 14 2018
Total Shares: 22,20,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 7.992 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36 Per Equity Share
Listing At: BSE SME
Listing Date: May 22 2018

Promoters And Management:

Promoters of U.H. Zaveri Limited Company are (i) Mr. Hitesh M. Shah aged 40 years is the Managing Director and Promoter of our company. He has completed his Bachelors in Commerce (B.Com.) from Gujarat University. He also holds the Provisional National Trade Certificate in Data Preparation & Computer Software from Gandhinagar, Gujarat. He started his career in Jewellery line at the age of 20 Years. He was also associated as Gold Valuer with Karnavati Co-Operative Bank, Ahmedabad for approximately 1 year and with Bapunagar Mahila Co-Operative Bank, Ahmedabad and ICICI Bank, Ahmedabad for approximately 2 years. He spells out the vision and the strategic direction of our Company and oversees our Company's expansion. (ii) Mrs. Sunitaben H. Shah aged 38 years is a Non-Executive Director and Promoter of our Company. She has completed her education from Bangalore. She joined the company since inception. She looks after the designing department of the Company. With over 8 years of Experience, she brings skills in designing the jewellery and has vast knowledge of current trends in the jewellery industry. She guides the artisans in jewellery designing as per the customer’s requirement (iii) Mr. Mahendrakumar H. Shah, aged 63 years is an Executive Director and Promoter of our company. He has completed his Bachelors in Commerce (B.Com.) from Ahmedabad. He joined the company since inception. He started his career at Union Bank of India and is retired bank manager of Union bank of India. He has over 37 years of managerial & consulting experience in business areas. He Looks after Business Development and Management of the Company. He also coordinates with Sales Team for client management, Proposals, Estimations and for the requirements generated from customers

Capital Structure:

(i) Authorized Share Capital ( 64,00,000  shares at FV@10) 6.4 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (38,96,400 Shares at FV@10) 3.8964 Cr
(iii) Present Issue (  22,20,000  Shares at FV@10) 2.2 Cr
(iv) Reservation for Market Maker  (1,14,000 Shares at FV@10) 11.4 Lacs
(v) Net Issue to Public (22,20,000-1,14,000=  21,06,000 Shares) 2.106 Cr
(vi) QIB & HNI Quota-10,53,000 50%
(vii) Retail Quota- 10,53,000 50%
(viii) Paid Up Share Capital after the issue 6.1164 Cr
The Average Cost of Aquisition of the Promoters:
Sr.no Name of the promoter No. of shares Average cost of equity shares
1 Mr. Hitesh M. Shah 3,583,719 14.06
2 Mrs. Sunitaben H. Shah 150,960 0.2
3 Mr. Mahendrakumar H. Shah 153,000 0.2

Financials of U.H. Zaveri Limited IPO:

As the company is recently formed in the month of August 2017, so only 5 months Financials upto Jan 2018 is shown in the DRHP.
 1. Balance Sheet Snippet[ Financials of 5  months as on Jan 2018]
       (i) Shareholders’ Fund[Equity] Value 580.32 Lacs
      (ii) Asset 892.14 Lacs
      (iii) Liability 311.82 Lacs
      (iv) Debt/Equity[<1 ideal] .53(reasoanble)
      (v)  Net Worth[Asset- Liability] 580.32 Lacs
     (vi) Current Ratio 2.82
     (vi)  RONW[PAT/Net Worth] or ROE 12.8%
     (vii) Book Value or NAV[ Net Worth/No.of Shares] 14.9
     (viii) P/B  [<5 ideal] 2.4
2. Profit n Loss Snippet (i) The Reveune of the company in the last 5 months is at 1389.35 Lacs (ii) The PAT of the company in the last 5 months is at 1288.69 Lacs (iii) The EBITDA Margins of the company in last 5 months is at 7% (iv) P/B(post issue)= 1.59 (v) Not Annualized EPS= 1.92 (vi) Annualized P/E=18.75 at the cutoff price of 36 3. Cash Flows The Closing Balance of Cash and Cash Equivalents at the end of Jan 31 2018 is 33.97 Lacs.

Comparison With Peers:

Sr.No Name of the Company FV EPS PE RONW(%)
1 Goldiam International Limited 10 3.9 19.2 6%
2 Renaissance Jewellery Limited 10 15.4 22 7.30%
3 Uday Jewellery Limited 10 1 24.4
4 U. H. Zaveri Limited 10 1.92 18.75 12.87%

Recommendation on U.H. Zaveri Limited IPO:

Review and Recommendation of

U.H. Zaveri Limited IPO

from our side is: The company is pretty new so financial details in detail are not available but whatever info is available in the prospectus, from that it seems that it has a reasonable P/E as compared to its peers and decent ROE of 12.87% as well. Rating: 5/10. 1-5: Fair 5-7: Good 7-10: Excellent .

Lead Manager of U.H. Zaveri Limited IPO:

  1. First Overseas Capital Limited

Registrar of U.H. Zaveri Limited IPO:

  1. Karvy Computershare Private Limited

Company Address:

U.H. Zaveri Limited GF/2, Manish Complex, Indrajit Tenaments, Opp. Diamond Mill, Nikol Road, Ahmedabad – 382350, Gujarat, India Phone No. +91 79 22703991, 22703992 Email: uhzl.compliance@gmail.com Website: www.uhzaveri.com

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of U.H. Zaveri Limited IPO as on
14 May 2018 | 11:58:03 PM

Category No.of shares offered No. of shares bid
1,053,000 1,995,000
1,053,000 3,990,000
114,000 114,000
2,220,000 6,099,000
QIBs No
QIBs+HNIs Subscription 1.89X
Retail Subscription 3.79X
Total Subscription 2.84X

Discussion on U.H. Zaveri Limited IPO:

    The company have not register their jewellery designs under the Designs Act, 2000 and they may lose income if their designs are duplicated by competitors.