Pure Giftcarat Limited IPO Review – BSE SME Issue

Pure Giftcarat Limited IPO Review

Pure Giftcarat Limited is going to hit the markets with their initial public offering. I will post Pure Giftcarat Limited IPO Review here and will also check if there is any profit-making opportunity for my readers. This is a BSE SME issue, so trading will be done in lots and without lot buying and selling is not available.

Issue Details:
Issue Date: April 26, 2017 – April 28, 2017
Offer Price: Rs. 13 per equity share
Minimum Application: 10000 equity shares
Listing Exchange: BSE SME

Issue Objectives:
1) To meet the working capital needs.
2) To meet issue expenses.
3) Other general corporate needs.

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About The Company:
Pure Giftcarat Limited was incorporated in the year 2011 and initial days the companies name was L’avace Dirays Limited. The name of the company was changed later. The company is engaged in trading and retailing diamonds and jewelry in Surat. Shri Shwet Koradiya, Shri Brijeshkumar Mali and Shri Paresh Lathiya, Smt Shweta Gandhi and Shri Bhavin Chandra are among the board of directors and are the promoters of the company. You can check the official website of the company: Pure Giftcarat Limited.

Company Financials:
Pure Giftcarat Limited
From the financials of the company, it has been noted that the company was not having significant business before FY 2016 and now it is slowly increasing its turnover and also some improvement is noted in the profitability. We can see a spike in the turnover in the FY 2016 before which the turnover was almost negligible.

Pure Giftcarat Limited IPO Review: We can see that the company does not have a tested business model yet and though after the IPO the company may reduce its debts and restructure its business with the flow of working capital, still I suggest to take a cautious approach on this issue. Considering the high market and not so impressive financials I suggest to this issue a miss OR only risk takers can consider this IPO.

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