Dev Labtech Venture
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 17 Mar 2023 – 21 Mar 2023
- Listing date
- 29 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹11.22 Cr
- Market cap at offer price
- ₹42.18 Cr
- Promoter holding
- 92.66% → 68.01% pre-issue → post-issue
- ISIN
- INE0NIJ01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- GF/22-23, Pattani Plaza, Dairy Road, Near Nilambaug Circle, 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 | 1,12,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
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 |
|---|---|---|
| EPS (₹) | 0.84 | — |
| P/E (×) | 60.71 | — |
| Market cap | — | ₹42.18 Cr |
Key performance indicators
- Return on net worth
- 22.71%
- ROCE
- 0.22%
- Debt / equity
- 0.64
- PAT margin
- 1.62%
- EBITDA margin
- 2.96%
- NAV per share
- ₹15.28
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Dev Labtech Venture
Dev Labtech Venture Limited, formerly Jay Gems (India) Private Limited, was originally incorporated in 1993 and is now a public company based in Bhavnagar, Gujarat. The company is engaged in the business of manufacturing, marketing, and sourcing diamonds—both natural and lab-grown—with applications in jewelry. The company is equipped with facilities to execute all types of manufacturing activities from rough natural stones to finished polished diamonds and from seed to finished lab-grown diamonds in various sizes, shapes, clarity levels, and colors. The company began manufacturing lab-grown diamonds in 2022 and has limited operating history in this segment.
Company Analysis
from RHPDev Labtech Venture Limited manufactures and trades natural and lab-grown diamonds for jewelry applications.
Dev Labtech Venture Limited, formerly Jay Gems (India) Private Limited, was originally incorporated in 1993 and is now a public company based in Bhavnagar, Gujarat. The company is engaged in the business of manufacturing, marketing, and sourcing diamonds—both natural and lab-grown—with applications in jewelry. The company is equipped with facilities to execute all types of manufacturing activities from rough natural stones to finished polished diamonds and from seed to finished lab-grown diamonds in various sizes, shapes, clarity levels, and colors. The company began manufacturing lab-grown diamonds in 2022 and has limited operating history in this segment.
Objects of the Issue
- To Meet Capital Expenditure ₹154.00 Lakhs p.20
- To Meet Working Capital Requirement ₹750.00 Lakhs p.20
- General Corporate Expenses ₹178.00 Lakhs p.20
- Public Issue Expenses ₹40.00 Lakhs p.20
- To Meet the Capital Expenditure Requirements ₹154.00 Lakhs p.78
- To Meet Working Capital Requirement ₹750.00 Lakhs p.78
- General Corporate Purposes ₹178.00 Lakhs p.78
- Working capital requirement p.205
- General corporate purposes p.205
- Issue expenses p.205
Issue Structure
- Total Issue
- ₹1122.00 Lakhs
- Fresh Issue
- 22,00,000 Equity Shares of ₹10/- each at ₹51/- per share aggregating ₹1122.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- Fixed price of ₹51.00 per equity share
- Face Value
- ₹10/-
Business Model
The company operates on a purchase order and retail basis, buying rough diamonds and lab-grown diamond seeds from suppliers, processing them through manufacturing (polishing, cutting for natural diamonds and growing/finishing for lab-grown diamonds), and selling finished diamonds to customers in the jewelry industry. The company does not have long-term contracts with customers but relies on ongoing purchase orders.
Business Segments
SWOT Analysis
- • Wide product portfolio in lab-grown and natural diamonds(p.100)
- • Experienced promoters with 41+ years in diamonds business(p.100)
- • Integrated manufacturing capability for both lab-grown and natural diamonds(p.99)
- • Advanced manufacturing technology including MPCVD machines(p.99)
- • Established distribution and marketing network(p.99)
- • Strong quality control and stringent manufacturing processes(p.100)
- • In-house expertise in lab-grown diamond manufacturing using MPCVD technology(p.186)
- • Established distribution and marketing network across multiple regions(p.186)
- • Experienced promoter with over 41 years in the diamonds business(p.187)
- • Diversified product portfolio reducing market segment risk(p.186)
- • Strong balance sheet with minimal debt(p.193)
- • Significant revenue growth year-over-year(p.189)
- • Limited operating history in lab-grown diamond manufacturing(p.23)
- • Lack of long-term customer contracts; high customer concentration (top 10 customers = 72.64% of revenues)(p.24)
- • High supplier concentration (top 10 suppliers = 97.88% of purchases as of Sept 2022)(p.28)
- • Rented premises with termination risk(p.25)
- • Unregistered trademark; pending registration application(p.25)
- • 100% of plant & machinery orders not yet placed(p.26)
- • Promoter group entities competing in similar business(p.26)
- • High indebtedness (₹114.52 Lakhs long-term + ₹4.13 Lakhs short-term as of Sept 30, 2022)(p.27)
- • Material discrepancies and non-compliances in corporate records(p.29)
- • Missing or untraceable corporate records from prior to 2006(p.28)
- • Delayed GST returns and accumulated penalties(p.29)
- • Non-compliance with gratuity provision (AS-15) in audited financial statements(p.29)
- • Negative cash flows from operations in prior periods(p.31)
- • Promoters have pledged personal properties to secure company borrowings(p.34)
- • No alternate source identified for capital expenditure and working capital funding(p.34)
- • No NOC received from Axis Bank for IPO(p.27)
- • Heavy dependence on top customers for revenue(p.106)
- • Limited capacity utilization in lab-grown diamonds(p.107)
- • Small employee base of only 24 employees(p.108)
- • Dependence on imported raw materials and vulnerability to import restrictions(p.108)
- • No formal contracts with suppliers(p.101)
- • Heavy dependence on top 10 customers representing 72.64% of revenue(p.192)
- • Minimal profitability with net profit of only ₹64.12 lakhs for stub period(p.189)
- • Declining inventory turnover ratio from 8.73 to 2.89 period-over-period(p.175)
- • Significant decline in net capital turnover ratio(p.175)
- • Government focus on gems & jewellery sector for export promotion(p.19)
- • 100% FDI permitted in gems and jewellery sector under automatic route(p.19)
- • Strong sectoral growth: expected employment increase from 5 million to 8.23 million by 2022(p.19)
- • Sector contributes 7.5% to India's GDP and 14% to merchandise exports(p.19)
- • Growing consumer acceptance and demand for lab-grown diamonds(p.106)
- • Expansion of lab-grown diamonds into industrial applications(p.103)
- • E-commerce and online sales growth for national and global reach(p.106)
- • Growing gems and jewellery sector in India with significant export potential(p.96)
- • Expansion of geographical presence to capture larger markets(p.101)
- • Expansion of lab-grown diamonds market due to cost advantages and sustainability(p.186)
- • Growing jewellery industry demand for natural and lab-grown diamonds(p.186)
- • International export opportunities with established export capabilities(p.186)
- • Potential to expand geographic reach beyond current operations(p.186)
- • Discretionary nature of diamond jewellery purchases; susceptible to economic downturns(p.24)
- • Lab-grown diamond regulations unclear; not well-established in India(p.24)
- • Significant competition from organized and unorganized players; unorganized sector offers highly competitive prices(p.30)
- • Raw material price fluctuations; no long-term supply agreements(p.26)
- • Technology obsolescence risk; modernization critical for cost reduction(p.27)
- • Indian economic dependence; vulnerable to macroeconomic slowdown and policy changes(p.33)
- • Natural disasters, terrorism, and geopolitical instability(p.37)
- • Competition Act and antitrust regulation enforcement risk(p.38)
- • GST regime and Indian tax policy uncertainty(p.38)
- • Global financial instability and currency volatility affecting India(p.39)
- • COVID-19 outbreak impact on business operations and supply chain(p.30)
- • Intense competition from international suppliers and unorganized sector(p.108)
- • Fluctuations in raw material prices and import restrictions(p.106)
- • Rising labour costs(p.106)
- • Dependence on diamonds industry growth and vulnerability to policy changes(p.106)
- • Risk of substitute products and changing customer preferences(p.106)
- • Global economic slowdown and reduced consumer spending(p.89)
- • Global competition in diamonds manufacturing, particularly from established Chinese producers(p.186)
- • Susceptibility to general economic conditions and market cyclicality(p.187)
- • Dependence on technology and risk of technological obsolescence(p.187)
- • Regulatory and compliance risks in multiple jurisdictions(p.187)
- • Volatility in raw material costs and supply chain disruptions(p.187)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Jerambhai Lavjibhai Donda | Promoter | 35.73% | 26.22% |
| Mrs. Labhuben Jerambhai Donda | Promoter | 32.90% | 24.15% |
| Mr. Jay Jerambhai Donda | Promoter | 21.89% | 16.07% |
| Mr. Jerambhai Lavjibhai Donda | Promoter | 35.73% | 26.22% |
| Mrs. Labhuben Jermabhai Donda | Promoter | 32.90% | 24.15% |
| Mr. Jay Jerambhai Donda | Promoter | 21.89% | 16.07% |
| Mrs. Nidhi J Donda | Promoter Group | 0.06% | 0.05% |
| Jerambhai L. Donda HUF | Promoter Group | 1.88% | 1.38% |
| Mrs. Bhavitaben D Kalathiya | Promoter Group | 0.02% | 0.02% |
| Mrs. Heenaben S Vaghasiya | Promoter Group | 0.02% | 0.02% |
| Mrs. Vanani Rinaben Chetanbhai | Promoter Group | 0.02% | 0.02% |
| Mrs. Dimple Jay Donda | Promoter Group | 0.13% | 0.10% |
| Jerambhai Lavjibhai Donda | Promoter | 35.73% | — |
| Jay Jerambhai Donda | Promoter | 21.89% | — |
| Labhubhen Jerambhai Donda | Promoter | 32.90% | — |
| Jerambhai Lavjibhai Donda | Promoter | — | — |
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.