Jay Jalaram Technologies SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Aug 2022 – 30 Aug 2022
- Listing date
- 08 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹36 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹10.80 Cr
- Market cap at offer price
- ₹40.07 Cr
- Promoter holding
- 100.00% → 73.04% pre-issue → post-issue
- ISIN
- INE0J6801010
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Office No.103, Shail Mall, B/H.Girish Cold Drink, Shilp Char Rasta, C.G.Road, Navrangpura, 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 | 1,50,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹36
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 30,000 | ₹10,80,000 |
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 (₹) | 7.36 | — |
| P/E (×) | 4.89 | — |
| Market cap | — | ₹40.07 Cr |
Key performance indicators
- Return on net worth
- 8.16%
- ROCE
- 11.84%
- Debt / equity
- 0.97
- PAT margin
- 0.53%
- NAV per share
- ₹39.40
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Jay Jalaram Technologies SME
Originally incorporated on January 17, 2012 as Jay Jalaram Technologies Private Limited and converted into a public limited company on May 25, 2022, the company retails smart mobile handsets, tablets, data cards, mobile accessories and consumer durable goods such as smart TVs, air conditioners, fridges and coolers of brands like Apple, Samsung, Oppo, Vivo, Xiaomi, TCL, Haier, Diakin and Voltas under its 'KORE MOBILE' brand. As on April 30, 2022 it operated 82 stores across Gujarat — 10 company-owned, 65 franchise-owned-and-franchise-operated (FOFO) and 7 franchise-owned-and-company-operated (FOCO) — plus 2 company-owned Revolt electric-bike showrooms pursuant to a Letter of Intent signed with Revolt Intelicorp Private Limited on September 10, 2019. It earns revenue from direct product sales at owned stores, a franchise fee of about 1% of franchisee turnover under the FOFO model, a 30–40% profit share under the FOCO model, refundable franchise deposits (₹1,134.86 lakhs outstanding as on March 31, 2021) and electric bike sales. In FY2021 it reported revenue from operations of ₹12,145.87 lakhs and PAT of ₹29.35 lakhs; for the nine months ended December 31, 2021, revenue from operations was ₹11,990.91 lakhs with PAT of ₹63.65 lakhs, with FOFO franchise stores contributing 60.34% of product sales.
Company Analysis
from DRHPJay Jalaram Technologies Limited, operating under the 'KORE MOBILE' brand, is a Gujarat-based multi-brand retailer of smartphones, mobile accessories and consumer durable electronics that also runs an exclusive Revolt electric bike dealership for the Ahmedabad region.
Originally incorporated on January 17, 2012 as Jay Jalaram Technologies Private Limited and converted into a public limited company on May 25, 2022, the company retails smart mobile handsets, tablets, data cards, mobile accessories and consumer durable goods such as smart TVs, air conditioners, fridges and coolers of brands like Apple, Samsung, Oppo, Vivo, Xiaomi, TCL, Haier, Diakin and Voltas under its 'KORE MOBILE' brand. As on April 30, 2022 it operated 82 stores across Gujarat — 10 company-owned, 65 franchise-owned-and-franchise-operated (FOFO) and 7 franchise-owned-and-company-operated (FOCO) — plus 2 company-owned Revolt electric-bike showrooms pursuant to a Letter of Intent signed with Revolt Intelicorp Private Limited on September 10, 2019. It earns revenue from direct product sales at owned stores, a franchise fee of about 1% of franchisee turnover under the FOFO model, a 30–40% profit share under the FOCO model, refundable franchise deposits (₹1,134.86 lakhs outstanding as on March 31, 2021) and electric bike sales. In FY2021 it reported revenue from operations of ₹12,145.87 lakhs and PAT of ₹29.35 lakhs; for the nine months ended December 31, 2021, revenue from operations was ₹11,990.91 lakhs with PAT of ₹63.65 lakhs, with FOFO franchise stores contributing 60.34% of product sales.
Objects of the Issue
- To Meet Working Capital Requirements ₹ 800.00 Lakhs p.62
- General Corporate Purpose ₹ 235.00 Lakhs p.64
- To meet Public Issue Expenses ₹ 45.00 Lakhs p.64
Issue Structure
- Total Issue
- ₹ 1080.00 Lakhs (30,00,000 Equity Shares of face value ₹ 10 each at ₹ 36 per share)
- Fresh Issue
- ₹ 1080.00 Lakhs (entire issue is a fresh issue)
- Offer for Sale
- Nil
- Price Band
- Fixed Price Issue at ₹ 36 per Equity Share (including share premium of ₹ 26 per Equity Share)
- Face Value
- ₹ 10/- each
Business Model
Sells smartphones, accessories and consumer durables directly through 10 company-owned stores; extends the 'KORE' brand to 72 franchise branches — earning ~1% of franchisee turnover as franchise fee from the 65 FOFO stores and a 30–40% share of store profits from the 7 FOCO stores — while collecting refundable franchise deposits; also sells Revolt electric bikes, spare parts and accessories through 2 company-owned showrooms.
Business Segments
SWOT Analysis
- • Experienced promoters and management team driving growth(p.93)
- • Widespread distribution network of 82 stores across Gujarat(p.93)
- • Wide multi-brand product range catering to all electronic communication needs under one roof(p.93)
- • Stores strategically located in high-footfall areas(p.93)
- • Diversified business model spanning mobiles, consumer durables and electric bikes(p.86)
- • Pending tax proceedings against the company, directors and promoters(p.21)
- • Registered office and warehouse not owned; leased from a promoter at nominal rent of Re. 1/month(p.22)
- • Majority of the 72 franchise agreements not renewed / inadequately executed(p.23)
- • Core 'KORE MOBILE' trademark and logo not owned/registered by the company(p.23)
- • High supplier concentration – top 10 suppliers account for roughly 52% to 78% of purchases(p.24)
- • Negative cash flow from operating activities in recent fiscals (FY19: ₹(61.51) lakhs; FY20: ₹(444.67) lakhs)(p.24)
- • Entire revenue concentrated in the state of Gujarat(p.25)
- • ₹76.50 lakhs of unsecured loans from promoters/promoter group/group entities repayable on demand(p.28)
- • Expansion into Tier 2/Tier 3 towns and across Western India(p.94)
- • Post-GST/e-way bill shift of consumer electronics retail from unorganised to organised players(p.94)
- • Broadening reach by adding channel partners/dealers to increase brand visibility(p.94)
- • Introducing new products across high-end and mid segments to meet rising demand(p.94)
- • Digital sales through company-owned website (per company's own SWOT)(p.96)
- • Fast-growing internet subscriber base supporting device/accessory demand(p.80)
- • Rising demand for electric bikes (Revolt dealership vertical)(p.95)
- • Seasonal and cyclical volatility in consumer demand affecting sales and inventory(p.25)
- • Competition from both organised and unorganised players, some with greater resources(p.26)
- • Rapid shifts in consumer trends and technology may erode market share(p.26)
- • Growing competition from online retailers offering competitive prices and wider ranges(p.27)
- • COVID-19 or any future pandemic/public health emergency(p.30)
- • Interest rate fluctuations increasing cost of servicing debt(p.30)
- • Changes in tax rates/levies, including GST implications on products(p.31)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kamlesh Varjivandas Thakkar | Promoter | 39.29% | 28.70% |
| Kamlesh Hariram Lalwani | Promoter | 39.29% | 28.70% |
| Mukeshkumar Navnitray Bhatt | Promoter | 10.71% | 7.82% |
| Vipul Thakkar | Promoter Group | 10.71% | 7.82% |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.