Shoora Designs
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 17 Aug 2023 – 21 Aug 2023
- Listing date
- 29 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹48 per share
- Lot size
- 3,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹2.03 Cr
- Market cap at offer price
- ₹7.19 Cr
- Promoter holding
- 100.00% → 71.77% pre-issue → post-issue
- ISIN
- INE0OJZ01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Swaraj shares & securities Pvt.Ltd.
- Registered office
- Diamond Apartments Co-op Housing Society, LT H No.7/3388/A, 6th floor, C/1, 601, Haththupura char rasta, 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 | 27,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹48
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,44,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,88,000 |
| S-HNI (max) | 6 | 18,000 | ₹8,64,000 |
| B-HNI (min) | 7 | 21,000 | ₹10,08,000 |
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 (₹) | 1.34 | — |
| P/E (×) | 35.82 | — |
| Market cap | — | ₹7.19 Cr |
Key performance indicators
- Return on net worth
- 7.22%
- ROCE
- 9.89%
- PAT margin
- 5.43%
- NAV per share
- ₹14.74
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Shoora Designs
Shoora Designs Limited, incorporated in March 2021, initially ventured into the textile business but pivoted in 2022 to the diamonds and jewelry sector. The company sources rough diamonds from suppliers, internally plans and maps them, then outsources the cleaving, laser cutting, and polishing processes to local job-workers in Surat's domestic market. The polished diamonds are subsequently sold to wholesalers or retailers, with business concentration predominantly in Surat, Gujarat, and an expanding presence in Mumbai, Maharashtra. The company also operates an e-commerce platform at www.shooradesigns.com for online sales.
Company Analysis
from RHPShoora Designs Limited procures rough diamonds, plans and maps them, outsources cleaving, laser cutting, and polishing to local job-workers in Surat, and sells polished cut-diamonds to wholesalers and retailers primarily in Gujarat and Maharashtra.
Shoora Designs Limited, incorporated in March 2021, initially ventured into the textile business but pivoted in 2022 to the diamonds and jewelry sector. The company sources rough diamonds from suppliers, internally plans and maps them, then outsources the cleaving, laser cutting, and polishing processes to local job-workers in Surat's domestic market. The polished diamonds are subsequently sold to wholesalers or retailers, with business concentration predominantly in Surat, Gujarat, and an expanding presence in Mumbai, Maharashtra. The company also operates an e-commerce platform at www.shooradesigns.com for online sales.
Objects of the Issue
- Funding of working capital requirements ₹13,500.00 Thousands p.21
- General Corporate Purposes ₹4,304.00 Thousands p.21
- Working capital requirements ₹13,500.00 Thousands (76.83% of Net Proceeds) p.70
- General corporate purposes ₹4,304.00 Thousands (24.17% of Net Proceeds) p.70
Issue Structure
- Total Issue
- ₹20,304.00 Thousands (4,23,000 Equity Shares)
- Fresh Issue
- ₹20,304.00 Thousands (4,23,000 Equity Shares at ₹48.00 per share)
- Offer for Sale
- Nil
- Price Band
- ₹48.00 per Equity Share
- Lot Size
- 3,000 Equity Shares and in multiples of 3,000 thereafter
- Face Value
- ₹10.00 per Equity Share
Business Model
The company procures rough diamonds and outsources cutting and polishing processes to third-party job-workers, then sells the finished polished diamonds to wholesalers and retailers. Revenue is generated through sales of polished cut-diamonds with business concentration in Surat and Mumbai.
Business Segments
SWOT Analysis
- • Government recognition and export promotion focus(p.20)
- • 100% FDI permitted under automatic route(p.20)
- • UAE trade agreement provides duty-free market access(p.20)
- • Industry scale and employment growth(p.20)
- • India's significant share of global gems and jewellery trade(p.20)
- • Established distribution networks in key diamond hubs(p.93)
- • Quality-focused polishing process to minimize defects(p.93)
- • Established customer relationships and retention(p.93)
- • Experienced management in diamonds and finance(p.93)
- • Experienced promoter team with deep industry expertise in gems and jewelry sector(p.121)
- • Rapid revenue growth and profitability achievement in initial operations(p.162)
- • Low debt levels with minimal financial leverage(p.157)
- • Acquired an existing proprietorship business with established customer base and operations(p.109)
- • Recognition as a Startup by the Indian government(p.109)
- • 100% underwritten issue with strong regulatory backing(p.190)
- • Positive net worth and cash generation track record(p.175)
- • Meets all BSE SME eligibility norms including 3-year track record(p.175)
- • Exceeds minimum net tangible assets requirement(p.176)
- • No regulatory prohibitions or prior violations(p.174)
- • Limited operating history and early-stage company risks(p.27)
- • Heavy dependence on informal job-worker arrangements without formal contracts(p.28)
- • Lack of systematic inventory management systems(p.30)
- • Rented premises owned by promoter creating conflict of interest(p.31)
- • Trademark in 'objected' status and owned by promoter without usage agreement(p.33)
- • Promoter-dependent business model(p.33)
- • Negative cash flows from operations in recent year(p.34)
- • Unsecured loans from promoters subject to recall(p.30)
- • High dependence on promoter-driven processes(p.94)
- • Working capital-intensive operations with adverse capital structure(p.94)
- • Limited track record in retail business(p.94)
- • Very young company with short operating history(p.105)
- • Significant customer concentration in trading business(p.147)
- • Very early stage company with limited operating history(p.158)
- • Recent business model shift from textiles to diamonds with execution risk(p.109)
- • High concentration of directorship and shareholding among promoters(p.124)
- • Dependence on few key management personnel with no succession plan disclosed(p.121)
- • Small asset base with recent rapid growth(p.176)
- • Limited operational history - company converted to public only in January 2023(p.175)
- • No prior public issue experience(p.183)
- • High external liabilities relative to assets(p.176)
- • GJEPC export expansion target to UAE post-CEPA(p.20)
- • E-commerce platform expansion for market reach(p.28)
- • Market expansion to Mumbai from Surat base(p.20)
- • Working capital infusion to support growth(p.21)
- • Increase working capital through IPO to support growth(p.94)
- • Geographic expansion beyond Surat to new markets(p.94)
- • Growing gems and jewellery sector in India(p.88)
- • Strengthen internal systems and processes(p.94)
- • Expansion into lab-grown diamonds market with government startup recognition(p.109)
- • Growth in domestic jewelry manufacturing sector with access to regional markets(p.136)
- • Listing on SME platform enabling access to capital markets for future growth(p.158)
- • Potential for geographic expansion beyond current Gujarat and Mumbai markets(p.136)
- • SME platform listing provides growth pathway to main board(p.190)
- • Mandatory market making support for 3 years enhances liquidity(p.191)
- • Access to capital markets for future growth financing(p.175)
- • Significant increase in rough diamond prices adversely impacts margins(p.28)
- • Labour cost inflation in job-worker supply chain(p.28)
- • Seasonal fluctuations in diamond demand(p.29)
- • Intense competition from organized and unorganized players(p.32)
- • Potential supply disruption from primary rough diamond suppliers(p.28)
- • Global economic volatility affecting demand(p.39)
- • Regulatory and compliance uncertainty in gems and jewellery sector(p.40)
- • Job-worker operational disruptions affecting production(p.28)
- • Competition from organized and unorganized players(p.94)
- • Competition based on product quality, price, and delivery(p.95)
- • Commodity nature of diamonds requires quick asset turnover(p.94)
- • Requirement for rapid working capital management(p.94)
- • Volatile diamond market prices and commodity price fluctuations(p.158)
- • Intense competition in gems and jewelry sector(p.165)
- • Regulatory changes in diamond and jewelry industry(p.159)
- • Risk of significant receivables write-off or customer defaults(p.147)
- • Dependence on international diamond supply chains and foreign currency exposure(p.136)
- • Stringent compliance and regulatory requirements for SME platform companies(p.187)
- • Minimum 50 allottees requirement or entire issue fails(p.188)
- • Risk of listing refusal triggers immediate repayment obligation(p.181)
- • Post-issue capital limitations restrict further fundraising flexibility(p.175)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Satish K Kansodariya | Promoter | 42.68% | 30.63% |
| Mrs. Sejalben Satish Kansodariya | Promoter | 24.81% | 17.81% |
| Mr. Rajeshbhai Labhubhai Mer | Promoter | 21.69% | 15.57% |
| Mr. Satish K Kansodariya | Promoter | 42.68% | 30.63% |
| Mrs. Sejalben Satish Kansodariya | Promoter | 24.81% | 17.80% |
| Mr. Rajeshbhai Labhubhai Mer | Promoter | 21.69% | 15.56% |
| Mrs. Jagrutiben Rajeshbhai Mer | Promoter Group | 10.17% | — |
| Mr. Vipulbhai Karmshibhai Anghan | Promoter Group | 0.65% | — |
| Satish K Kansodariya | Promoter | 42.68% | — |
| Sejalben Satish Kansodariya | Promoter | 24.81% | — |
| Rajeshbhai Labhubhai Mer | Promoter | 21.69% | — |
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.