Veerkrupa Jewellers
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Jun 2022 – 08 Jul 2022
- Listing date
- 18 Jul 2022
- Face value
- ₹10 per share
- Issue price
- ₹27 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹8.10 Cr
- Market cap at offer price
- ₹21.23 Cr
- Promoter holding
- 79.94% → 49.44% pre-issue → post-issue
- ISIN
- INE0ID001024
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- Shop No.7, Vrundavan Residency, Near Satyam School, Near Dharmnath Prabhu Society, 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 | 1,52,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹27
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 36,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 40,000 | ₹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 (₹) | 0.06 | — |
| P/E (×) | 450.00 | — |
| Market cap | — | ₹21.23 Cr |
Key performance indicators
- Return on net worth
- 0.22%
- PAT margin
- 0.23%
- NAV per share
- ₹26.25
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Veerkrupa Jewellers
Veerkrupa Jewellers Limited was incorporated as a private company on September 13, 2019, and converted to a public company on January 17, 2020. The business began as a proprietary firm in 2001 and was acquired by the company in January 2020. The company operates two retail showrooms in Naroda and Narol, Ahmedabad, each offering collections of gold, silver, and diamond jewellery designed to reflect regional customer preferences. The jewellery is procured from manufacturers in Ahmedabad, Mumbai, Rajkot, and Surat, or manufactured through independent job workers in Ahmedabad. The business is founded by promoters Mr. Chirag Arvind Shah (Managing Director) and Mrs. Nehaben Chiragbhai Shah (Whole-Time Director), who together have over 27 years of experience in the jewellery industry.
Company Analysis
from RHPVeerkrupa Jewellers Limited is a jewellery retailer operating showrooms in Ahmedabad that offers gold, silver, and diamond jewellery reflecting regional customer preferences.
Veerkrupa Jewellers Limited was incorporated as a private company on September 13, 2019, and converted to a public company on January 17, 2020. The business began as a proprietary firm in 2001 and was acquired by the company in January 2020. The company operates two retail showrooms in Naroda and Narol, Ahmedabad, each offering collections of gold, silver, and diamond jewellery designed to reflect regional customer preferences. The jewellery is procured from manufacturers in Ahmedabad, Mumbai, Rajkot, and Surat, or manufactured through independent job workers in Ahmedabad. The business is founded by promoters Mr. Chirag Arvind Shah (Managing Director) and Mrs. Nehaben Chiragbhai Shah (Whole-Time Director), who together have over 27 years of experience in the jewellery industry.
Objects of the Issue
- To meet the Working Capital requirements Rs. 668.00 Lakhs p.19
- General Corporate Expenses Rs. 82.00 Lakhs p.19
- To meet the expenses of the Issue Rs. 60.00 Lakhs p.20
- To meet the Working Capital requirements ₹668.00 Lakhs p.66
- General Corporate Expenses ₹82.00 Lakhs p.68
- To meet the expenses of the Issue ₹60.00 Lakhs p.69
- Funding capital expenditure for expansion of retail showrooms
- General corporate purposes p.173
Issue Structure
- Total Issue
- Rs. 810.00 Lakhs
- Fresh Issue
- 30,00,000 Equity Shares of face value Rs. 10/- each at Rs. 27/- per share aggregating Rs. 810.00 Lakhs
- Offer for Sale
- Nil - only Fresh Issue
- Price Band
- Rs. 27/- per Equity Share (Fixed Price Issue)
- Lot Size
- 4,000 Equity Shares (minimum); multiples of 4,000 thereafter
- Face Value
- Rs. 10/- each
Business Model
The company operates as a jewellery retailer, procuring finished jewellery from external manufacturers and job workers at pre-agreed or spot rates linked to market benchmarks, and selling them through two retail showrooms. Revenue is generated from the sale of jewellery products to retail customers. The company does not enter into long-term agreements with suppliers; arrangements are on a short-term and spot basis.
Business Segments
SWOT Analysis
- • Experienced management team with significant jewellery industry expertise(p.19)
- • Established presence in Ahmedabad with two operational showrooms(p.19)
- • Strategic positioning in India's growing gems and jewellery sector(p.19)
- • Established brand recognition in northeast Ahmedabad(p.88)
- • Prime showroom locations driving customer footfall(p.89)
- • Diversified product portfolio across price points and occasions(p.90)
- • Experienced promoters with 27+ years in gems and jewellery industry(p.91)
- • Strong relationships with local jewellery manufacturers and job workers(p.91)
- • Effective inventory management and security practices(p.93)
- • Geographic concentration risk with both showrooms located in northeast Ahmedabad(p.24)
- • Complete dependence on third-party manufacturers with no long-term agreements(p.24)
- • Limited inventory management capability and risk of inventory mismatches(p.26)
- • No insurance coverage against operational hazards and losses(p.31)
- • Lack of intellectual property protection for jewellery designs(p.26)
- • Rented premises with short-term agreements and relocation risk(p.27)
- • No non-compete agreements with promoters and group entities operating similar business(p.30)
- • Negative cash flows in recent fiscal years(p.30)
- • Limited geographic presence - only two showrooms in Ahmedabad(p.88)
- • Concentration of customer base in specific regional areas(p.89)
- • No insurance coverage currently in place(p.93)
- • Small employee base of only 13 employees(p.94)
- • High dependence on two promoters for business management(p.91)
- • Lack of proprietary manufacturing capacity(p.93)
- • Expected growth in India's gems and jewellery exports to $100 billion by 2025(p.19)
- • India's strong position as global diamond exporter with 20.6% market share(p.19)
- • Expansion of showroom network and geographic reach(p.25)
- • Working capital to meet inventory and bulk purchase requirements(p.19)
- • Expansion of retail network within Gujarat and beyond(p.91)
- • Development of e-commerce and digital channels(p.91)
- • Expansion of product portfolio and branded jewellery lines(p.91)
- • Growing demand in gems and jewellery sector with strong industry tailwinds(p.78)
- • Rising adoption of organized retail and branded jewellery(p.86)
- • Increased consumer preference for hallmarked and certified jewellery(p.88)
- • High fragmentation and competition from organized and unorganized jewellery retailers(p.31)
- • Fluctuations in gold and precious stone prices affecting margins and demand(p.25)
- • Discretionary nature of jewellery purchases sensitive to consumer spending and economic conditions(p.28)
- • Exposure to natural calamities and disasters in operating regions(p.24)
- • Regulatory changes affecting operations and tax regime impacts(p.36)
- • Foreign exchange fluctuation risks from recent export activities(p.33)
- • Seasonal dependency with significant sales concentration during festive and wedding seasons(p.27)
- • Intense competition from organized and unorganized jewellery retailers(p.93)
- • Volatility in precious metal prices affecting inventory and profitability(p.66)
- • Regulatory changes including mandatory hallmarking requirements(p.85)
- • Cyclical nature of jewellery industry with seasonal demand variations(p.93)
- • FX and import duty fluctuations affecting raw material costs(p.85)
- • Economic slowdown impacting consumer discretionary spending on jewellery(p.86)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Chirag Arvind Shah | Promoter | 67.27% | 41.60% |
| Mrs. Nehaben Chiragbhai Shah | Promoter | 12.66% | 7.83% |
| Mr. Chirag Arvindbhai Shah | Promoter | 67.27% | 41.60% |
| Mrs. Nehaben Chiragbhai Shah | Promoter | 12.66% | 7.83% |
| Mr. Chirag Arvindbhai Shah | Promoter | 67.27% | — |
| Mrs. Nehaben Chiragbhai Shah | Promoter | 12.66% | — |
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.