In the Indian economy gems and jewellery plays a significant role, contributing 7% of the GDP. It is undoubtedly, one of the fastest growing sectors in India. It was incorporated in 2005 as Shilvi Jewels Private Limited. The Gujrat based company engaged in the wholesale business of gold jewellery. Their selling products include gold based chains, bracelets, and necklaces. Palm Jewels basically based on gold and silver. Gold bars are provided to the workers who are based in Ahmedabad and Mumbai. In order to analyse the IPO properly a collection of data is required. Therefore, here is some crucial information regarding Palm Jewels’ data, such as issue price, face value, issue type, issue size etc for their forthcoming issue. Hence, Palm Jewels IPO Review can help investors to take the right decision.
About Palm Jewels Limited-Issue Details
- Issue open on- May 25, 2018
- The issue close on- Jun 1, 2018
- Issue Type: Fixed Price Issue IPO
- Face value: Rs 10 Per Equity Share
- Issue size: 2,968,000 Equity Shares of Rs 10 that aggregating up to Rs. 8.90 Cr
- Issue price: Rs 30 Per Equity share
- Market lot: 4000 Shares
- Listing At: BSE SME exchange
- Minimum order quantity: 4000 Shares
- DRHP: Click here
Purpose of Issuing Stock
Before analysing a company’s stock it is important to discuss the purpose of issuing.
- One of the main objectives of issuing stock is to raise the working capital of the company.
- After issuing stock, company’s brand name, the corporate image will enhance to some extent.
- Besides this, it provides liquidity to its shareholders.
- Also, provide the public market for the equity shares in India.
About the Company
A company’s background history analysis also plays a major role in investing.
- Palm procure silver and gold through the bullion market and the local
markets in Ahmedabad.
- The finished jewellery product is sold by their marketing and sales team directly to other jewellery stores. the jewellery is widely sold mainly in Gujarat only.
- They are a customer-centric company, focus mainly on the utmost client satisfaction by offering them
quality assured products.
- Their products include mainly chains, bracelets, necklaces.
- Their business strategy includes enhancing and operating effectiveness and efficiency, strong customer relationship, active and regular participation.
- Palm’s marketing strategies are collaboration, competition, manpower, import-export obligation.
- Managing Director: Rohit D. Shah
- Wholetime Director: Saunil R. Shah
- Additional Director: Dilipkumar S. Shah
Let’s come to the most important aspects of the review, financial statement. The chart is as follows:
Palm Jewels IPO Review:
However, the draft prospectus express that the profit is gradually increasing over the years. Last FY year profit after tax was 1.54. As per the last financial year EPS set at 0.49. DRHP or draft red herring prospectus also reflects P/E ratio value, that is based on the basic and diluted EPS of FY 2016-2017 stands at 61.22. In the last FY2016-17, the return on net worth (RoNW) was 4.54. Palm Jewels have a NAV/share of 10.78 in the last FY. These data reflect an overall NEUTRAL view on Palm Jewels IPO Review. So, before investing it is advised to go through the review first and invest on your own risk.
Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. An experienced stock market content writer Ankita is also trading on her own account. Ankita is also preparing for the NISM Research Analyst Series XV examination seriously.
Categories: IPO Review