Ashapuri Gold Ornament
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Mar 2021 – 08 Mar 2021
- Listing date
- 17 Mar 2021
- Face value
- ₹10 per share
- Issue price
- ₹81 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹30.02 Cr
- Market cap at offer price
- ₹172 Cr
- Promoter holding
- 100.00% → 73.00% pre-issue → post-issue
- ISIN
- INE05FR01029
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- 109 to 112-A, Super Mall, Nr.LalBunglow, C.G Road, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,85,600 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹81
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,29,600 |
| S-HNI (min) | 2 | 3,200 | ₹2,59,200 |
| S-HNI (max) | 7 | 11,200 | ₹9,07,200 |
| B-HNI (min) | 8 | 12,800 | ₹10,36,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹172 Cr |
About Ashapuri Gold Ornament
Ashapuri Gold Ornament Limited, incorporated as a private company on June 17, 2008 and converted to public limited company on January 23, 2019, is engaged in the wholesale trading of gold jewellery. The company operates from its showroom at C.G. Road, Ahmedabad, and gets jewelleries manufactured on a job work basis at Ahmedabad and Rajkot. The company is well-known and trusted as a wholesale gold jewellery supplier. The company deals only in hallmarked jewellery and also deals in antique jewellery. It has a track record of almost two decades signifying customer trust in the quality and purity of its products. The company is now planning to expand by setting up a manufacturing unit and investing in a partnership firm engaged in readymade garments retail.
Company Analysis
from RHPAshapuri Gold Ornament Limited is a wholesale jewellery trading and manufacturing company operating in the gems and jewellery sector in India.
Ashapuri Gold Ornament Limited, incorporated as a private company on June 17, 2008 and converted to public limited company on January 23, 2019, is engaged in the wholesale trading of gold jewellery. The company operates from its showroom at C.G. Road, Ahmedabad, and gets jewelleries manufactured on a job work basis at Ahmedabad and Rajkot. The company is well-known and trusted as a wholesale gold jewellery supplier. The company deals only in hallmarked jewellery and also deals in antique jewellery. It has a track record of almost two decades signifying customer trust in the quality and purity of its products. The company is now planning to expand by setting up a manufacturing unit and investing in a partnership firm engaged in readymade garments retail.
Objects of the Issue
- Establishment of Manufacturing unit of Jewellery ₹150.00 lakhs p.15
- Incremental Working capital requirements ₹1,800.00 lakhs p.15
- Investment in Partnership Firm ₹180.00 lakhs p.15
- General Corporate Purpose ₹725.00 lakhs p.15
- Public Issue Expenses ₹77.50 lakhs p.15
- Repayment of borrowings
- Funding capex for manufacturing facility p.86
- General corporate purposes
Issue Structure
- Total Issue
- ₹2,932.50 lakhs
- Fresh Issue
- 57,50,000 Equity Shares at ₹51 per share aggregating to ₹2,932.50 lakhs
- Offer for Sale
- Not applicable
- Price Band
- Fixed price of ₹51 per equity share
- Lot Size
- Not explicitly stated in part 1
- Face Value
- ₹10 per equity share
Business Model
The company generates revenue through wholesale trading of gold jewellery. Gold jewelleries are designed either in-house or by third parties and manufactured on a job work basis. The company maintains a showroom on C.G. Road, Ahmedabad, which serves as a prime location for buying gold and diamond jewellery. The main raw material is gold, which is sourced from suppliers. The company operates on a purchase order system with vendors and suppliers without long-term supply agreements.
Business Segments
SWOT Analysis
- • Established brand and customer trust in gold jewellery(p.15)
- • Prime location showroom in emerging gold jewellery market(p.15)
- • Hallmark certification for all jewellery products(p.15)
- • Clean legal and compliance track record(p.146)
- • No material litigation exposure(p.147)
- • Positive net worth and tangible assets(p.156)
- • Consistent profitability and positive cash accruals(p.156)
- • Non-ownership of registered office and showroom premises(p.20)
- • Lease agreements terminable with short notice(p.21)
- • High working capital intensity and inventory dependency(p.21)
- • Inventory forms substantial portion of assets(p.22)
- • Unregistered trademarks lack statutory protection(p.21)
- • Geographically concentrated operations in single location(p.22)
- • Limited experience in readymade garments business(p.22)
- • Heavy dependence on few large suppliers(p.22)
- • No long-term supply agreements with vendors(p.22)
- • Machinery orders not yet placed for manufacturing unit(p.23)
- • Promoters lack manufacturing experience(p.23)
- • Significant unsecured and demand-repayable loans from promoters(p.25)
- • Negative cash flows from operations in prior periods(p.25)
- • Entirely dependent on job workers with no written agreements(p.27)
- • Outstanding material dues to creditors(p.149)
- • Material licensing and approvals not yet obtained(p.152)
- • Trade mark application still pending(p.151)
- • Hallmarking license validity expiring soon(p.151)
- • Expansion of readymade garments business in multiple Gujarat cities(p.22)
- • Establishment of in-house manufacturing capacity(p.15)
- • Significant growth potential in gems and jewellery sector(p.15)
- • Rising employment and sector focus by Government(p.15)
- • SME Platform listing providing capital market access(p.150)
- • Migration potential to main board after two years(p.169)
- • Mandatory market making for three years(p.170)
- • Equity capital raising for business expansion(p.171)
- • Highly competitive market with organized and unorganized players(p.23)
- • Aggressive competition and pricing pressure(p.23)
- • Unorganized sector offers highly competitive prices(p.29)
- • E-commerce competition and visibility advantage(p.29)
- • Volatile gold prices linked to international commodity indices(p.23)
- • Seasonal business with significant Diwali and festival dependence(p.24)
- • Sensitive to consumer discretionary spending and economic cycles(p.28)
- • Risk of design duplication by competitors without legal protection(p.29)
- • 100% revenue dependence on Indian economy(p.29)
- • Natural calamities and localized disruptions(p.29)
- • Global and political economic factors beyond control(p.28)
- • Regulatory framework changes(p.29)
- • Tax policy and GST changes(p.30)
- • Short lifecycle of innovative jewellery designs(p.24)
- • Regulatory framework changes and compliance requirements(p.174)
- • Foreign investment restrictions and policy changes(p.205)
- • Mandatory minimum allottee requirement risk(p.168)
- • Listing approval dependency(p.159)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Saremal Soni | Promoter | 20.72% | 15.13% |
| Mr. Dinesh Soni | Promoter | 14.90% | 10.88% |
| Mr. Jitendra Soni | Promoter | 14.23% | 10.39% |
| Mrs. Narmadadevi Soni | Promoter Group | 14.08% | 10.28% |
| Mrs. Kiran Soni | Promoter Group | 9.15% | 6.68% |
| M/s. Dinesh Soni HUF | Promoter Group | 8.24% | 6.02% |
| M/s. Saremal Soni HUF | Promoter Group | 7.60% | 5.55% |
| Mrs. Alka Soni | Promoter Group | 7.33% | 5.35% |
| M/s. Jitendra Soni HUF | Promoter Group | 3.75% | 2.73% |
| Mr. Saremal Soni | Promoter, Chairman cum Managing Director | 32,20,800 shares (32.208%) | — |
| Mr. Dinesh Soni | Promoter, Managing Director | 23,15,940 shares (23.159%) | — |
| Mr. Jitendra Soni | Promoter, Joint Managing Director | 22,11,330 shares (22.113%) | — |
| Dinesh S Soni (HUF) | Group Company partner/associated entity | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.