Sona Hi Sona Jewellers SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2019 – 04 Oct 2019
- Listing date
- 15 Oct 2019
- Face value
- ₹10 per share
- Issue price
- ₹10 per share
- Lot size
- 10,000 shares
- Total issue size
- ₹4.50 Cr
- Promoter holding
- 100.00% → 73.19% pre-issue → post-issue
- ISIN
- INE06MH01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- 7, Millenium Plaza,, Opp. Swaminarayan Mandir,, Mansi Cross Road, Vastrapur,, 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 | 2,40,000 | — | — |
Application size
Minimum 10,000 shares per lot, in multiples, at ₹10
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10,000 | ₹1,00,000 |
| Retail (max) | 2 | 20,000 | ₹2,00,000 |
| S-HNI (min) | 3 | 30,000 | ₹3,00,000 |
| S-HNI (max) | 10 | 1,00,000 | ₹10,00,000 |
| B-HNI (min) | 11 | 1,10,000 | ₹11,00,000 |
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 |
|---|
About Sona Hi Sona Jewellers SME
Sona Hi Sona Jewellers (Gujarat) Limited traces its origins to a proprietorship, 'M/s. Sona Hi Sona', started by founder-promoter Vijay Shah in 2000; he and his wife Alpaben Shah incorporated the company as a private limited entity on February 09, 2010, took over the entire proprietorship business vide an Agreement for Sale and Purchase of Business dated September 09, 2010, and converted it into a public limited company pursuant to a special resolution dated July 08, 2017 (fresh certificate of incorporation dated July 19, 2017). The company is into the job work and trading business of gold jewellery and ornaments: it gets manufacturing done by outside job workers for its own designs (and does not perform job work for other companies), offers gold jewellery with or without studded precious and semi-precious stones, customises jewellery on individual customer preference, and also deals in wholesale trading of branded jewellery as well as real diamond and silver jewellery and ornaments. It operates mainly through two brands launched on May 15, 2018 — 'Freya' (antique jewellery and ornaments) and 'Jinansh' (American Diamond jewellery) — alongside the corporate 'Sona Hi Sona' name, from its registered office-cum-showroom on lease at Millennium Plaza, Mansi Cross Road, Vastrapur, Ahmedabad, with 9 permanent employees. Its main business income comes from wholesale customers (top ten customers contributed ~93.92% of FY19 revenues), and restated financials show revenue from operations of ₹6,717.98 lakhs and profit after tax of ₹38.86 lakhs in FY2019 (FY2018: ₹5,903.26 lakhs / ₹18.65 lakhs; FY2017: ₹5,448.10 lakhs / ₹6.18 lakhs). The company is making a 100% fixed-price initial public issue of 45,00,000 equity shares of ₹10 face value at ₹10 per share, aggregating ₹450.00 lakhs, to list on the NSE EMERGE platform, primarily to meet incremental working capital requirements.
Company Analysis
from RHPSona Hi Sona Jewellers (Gujarat) Limited is an Ahmedabad-based SME jeweller engaged in the job work and trading of gold jewellery and ornaments — including antique jewellery under its 'Freya' brand and American Diamond jewellery under its 'Jinansh' brand — sold predominantly to wholesale customers.
Sona Hi Sona Jewellers (Gujarat) Limited traces its origins to a proprietorship, 'M/s. Sona Hi Sona', started by founder-promoter Vijay Shah in 2000; he and his wife Alpaben Shah incorporated the company as a private limited entity on February 09, 2010, took over the entire proprietorship business vide an Agreement for Sale and Purchase of Business dated September 09, 2010, and converted it into a public limited company pursuant to a special resolution dated July 08, 2017 (fresh certificate of incorporation dated July 19, 2017). The company is into the job work and trading business of gold jewellery and ornaments: it gets manufacturing done by outside job workers for its own designs (and does not perform job work for other companies), offers gold jewellery with or without studded precious and semi-precious stones, customises jewellery on individual customer preference, and also deals in wholesale trading of branded jewellery as well as real diamond and silver jewellery and ornaments. It operates mainly through two brands launched on May 15, 2018 — 'Freya' (antique jewellery and ornaments) and 'Jinansh' (American Diamond jewellery) — alongside the corporate 'Sona Hi Sona' name, from its registered office-cum-showroom on lease at Millennium Plaza, Mansi Cross Road, Vastrapur, Ahmedabad, with 9 permanent employees. Its main business income comes from wholesale customers (top ten customers contributed ~93.92% of FY19 revenues), and restated financials show revenue from operations of ₹6,717.98 lakhs and profit after tax of ₹38.86 lakhs in FY2019 (FY2018: ₹5,903.26 lakhs / ₹18.65 lakhs; FY2017: ₹5,448.10 lakhs / ₹6.18 lakhs). The company is making a 100% fixed-price initial public issue of 45,00,000 equity shares of ₹10 face value at ₹10 per share, aggregating ₹450.00 lakhs, to list on the NSE EMERGE platform, primarily to meet incremental working capital requirements.
Objects of the Issue
- Meeting incremental working capital requirements ₹ 372.43 lakhs p.66
- General corporate purposes ₹ 44.77 lakhs p.66
Issue Structure
- Total Issue
- 45,00,000 Equity Shares of face value ₹ 10.00 each aggregating to ₹ 450.00 Lakhs (of which 2,40,000 shares / ₹ 24.00 Lakhs reserved for the Market Maker; Net Issue 42,60,000 shares / ₹ 426.00 Lakhs)
- Fresh Issue
- Entire issue is a fresh issue: 45,00,000 Equity Shares by the Company aggregating Rs 450.00 Lakhs
- Price Band
- 100% Fixed Price Issue at ₹ 10.00 per Equity Share (Issue Price is 1.00 time of the face value)
- Lot Size
- Minimum lot size of 10,000 Equity Shares (as stated in the Market Making arrangement)
- Face Value
- ₹ 10.00
Business Model
The company earns revenue almost entirely from the sale of products — primarily gold ornaments got manufactured on a job-work basis by third parties to its own designs, plus traded/branded finished jewellery (including real diamond and silver jewellery) — sold mainly to wholesale customers; it does not perform job work for other companies.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vijay Shah | Promoter | 46.44% | 33.99% |
| Alpaben Shah | Promoter | 14.57% | 10.66% |
| Jayesh Shah | Promoter Group | 8.55% | 6.26% |
| Jirawala Association | Promoter Group | 17.69% | 12.96% |
| Devilaben Shah | Promoter Group | 2.05% | 1.50% |
| Sonal Shah | Promoter Group | 0.0020% | 0.0015% |
| Chinulal Shah | Promoter Group | 10.70% | 7.83% |
Leadership
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