Mr. Shubham Bharatbhai Shah, aged 24 years, is the Managing Director and Chief Financial Officer of RO Jewels. He studied 2 years in the field of Masters of Business Administration from L.J. Institute of Management, Ahmedabad. Then he joined his family business of jewellery in the year 2014. In 2018, he ventured out to start his jewellery business with parents and started this company under the name of "RO Jewels Limited". He has more than 5 years of experience in jewellery industry. As a MD, CFO and Promoter of our company, his responsibility is related to creating, researching and updating the stock of chains and other jewellery's with traditional and western and indo western designs of chains and other jewellery's.
Mr. Bharat Rasiklal Shah, aged 57 years, is the Promoter and Whole Time Director of the company. After completion of matriculation, he has joined the jewellery business in the year 2005. For the expansion of business, he has started his own proprietary firm under the name of Ravi Ornaments. His in-depth knowledge of jewellery industry has contributed immensely towards the growth of our firm which is now merged into the company. Currently, he is looking after the marketing and accounts department of the Company. He is also responsible in strengthening the sales and marketing strategy of the company.
The Company was originally incorporated under the Companies Act, 2013 vide certificate of incorporation dated December 11, 2018 issued by the Registrar of Companies, Central Registration Centre, Manesar. Subsequently, Our Company was converted in to a public company pursuant to a special resolution passed by our shareholders at the EGM held on September 20, 2019 and consequently name was changed to "RO Jewels Limited" (ROJL) vide fresh certificate of incorporation dated October 01, 2019 issued by Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Subsequently, our Company has acquired the business of Proprietorship Concern of one of our Promoter- Mr. Bharat Rasiklal Shah viz, M/s Ravi Ornaments through the Business Succession Agreement dated December 18, 2019. Consequently, the business of the proprietorship firm was merged into RO Jewels Limited. The CIN of the Company is U74999GJ2018PLC105540.
They are engaged in the wholesale business of gold and Silver chains. Our registered office and business of operation is based in Ahmedabad. We essentially sell gold based chains, bracelets, gold/silver bars and necklaces. We procure gold & silver majorly through the bullion market and partially from the local markets in Ahmedabad. We purchase only readymade Chains and other jewelries from the jewellery manufacturers or independent jewellery wholesalers located in Ahmedabad and Mumbai. These are then sold through our showroom situated at Manek Chowk, Ahmedabad and by our marketing and sales team directly to other jewellery stores. Our jewellery is widely sold throughout Gujarat only through B2B marketing and/ or Direct/Outbound marketing strategy.
They have a diversified portfolio for chains and jewelries that cater to our customers taste, preference, choice and the ever changing trends in the chain and jewellery designs. Our portfolio offers our customers a wide variety of traditional, Indo-western, & modern chain and jewellery. We procure chains and jewelries that are hallmarked from BIS recognized Assaying and Hallmarking Centre for our customers. The BIS hallmark, is a mark of conformity widely accepted by the consumer bestow the additional confidence to the consumer on the purity of our gold jewellery.Our promoters together have an approximate 40 years of experience in gems and jewellery industry.
Incorporated in 2018, RO Jewels is engaged in the wholesale business of Silver and Gold chains. It is an Ahmedabad based business to sell gold/silver necklaces, bars, bracelets, and chains. RO Jewels acquired M/s Ravi Ornaments dated 18th Dec 2019.
The company purchases the readymade jewelry from the independent wholesalers and manufacturers across Mumbai and Ahmedabad. It has a showroom at Manek Chowk, Ahmedabad to sell the products. Apart from this, the company also sells products to other jewelry stores through B2B marketing strategy.
The Jewelry portfolio of the company includes Indo-western, traditional, and modern jewelry. All the jewelry offered by RO Jewels has BIS Hallmark (widely accepted mark of purity of gold).
Mr. Bharat Rasiklal Shah, Mrs. Pravinaben Shah and Mr. Shubham Bharatbhai Shah are the promoters of the company.
To part finance its working capital (Rs. 4.60 cr.) and general corpus fund needs (Rs. 0.06 cr.), ROJL is coming out with a maiden IPO of 1365000 equity shares of Rs. 10 each at a fixed price of Rs. 36 per share to mobilize Rs.4.91 cr. The issue opens for subscription on 12.03.20 and will close on 17.03.20. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 48.20% of the post issue paid-up capital of the company. This issue is solely lead managed by First Overseas Capital Ltd. and KFin Technologies Pvt. Ltd. is the registrar to the issue. Beeline Broking Ltd. is acting as a market maker for this issue. ROJL is spending Rs. 0.25 cr. for the entire IPO process. Bankers to the company is trouble ridden Yes Bank Ltd.
Having issued/converted initial equity at par, ROJL converted further equity for Rs. 40 per share between January 2019 and May 2019. It has also issued bonus shares in the ratio of 1 for 6 in August 2019. The average cost of acquisition of shares by the promoters is Rs. 8.57, Rs. 33.63 and Rs. 34.20 per share. ROJL's current paid-up equity capital of Rs. 1.47 cr. will stand enhanced to Rs. 2.83 cr. post this issue. Post this issue, ROJL is looking for a market cap of Rs. 10.20 cr.
For the last three fiscals, as per restated financial data, ROJL has posted turnover/net profits of Rs. 5.74 cr. / Rs. 0.06 cr. (FY17), Rs. 9.76 cr. / Rs. 0.07 cr. (FY18) and Rs. 4.24 cr., / Rs. 0.01 cr. (FY19). Thus it has shown inconstancy in the top and bottom lines. For the first half of FY20, it has earned a net profit of Rs. 0.15 cr. on a turnover of Rs. 10.47 cr. There appears to be window dressing in the IPO year. However, according to offer documents, an amalgamation of Ravi Ornaments with the newly formed limited company i.e. ROJL has transpired boosts in the top and bottom lines. FY17 and FY18 financial data related to Ravi Ornaments only and thereafter it is for ROJL.
ROJL has posted an EPS of Rs. 2.51 for FY19 and Rs. 1.03 (not annualized) for H1FY20. It has posted RoNW of 1.38% and 2.91% for the said periods respectively. The issue is priced at a P/BV of 1.02 based on its NAV of Rs. 35.21 as on 30.09.19 and at a P/BV of 1.03 based on post-issue NAV of Rs. 35.06. If we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 34 against industry composite of 40 P/E, making it a fully priced issue based on super earnings for H1 FY20. Sustainability of such performance appears remote as the company is in a highly competitive segment with organized/unorganized players around.
ROJL's financial performance is showing inconsistency. It has only one showroom with just 9 employees (including 2 directors and 1 company secretary) as on filing of offer documents. On the basis of supper earnings for H1 FY20, the issue appears fully priced. Company's bankers are trouble ridden Yes Bank Ltd. LM has a poor track record with similar issues in the past. Simply stay away from this IPO.
| Particulars | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 |
|---|---|---|---|
| Total Assets (In ₹ Millions) | 179.06 | 230.49 | 156.13 |
| Total Revenue (In ₹ Millions) | 424.34 | 975.70 | 574.40 |
| Profit After Tax (PAT) (In ₹ Millions) | 1.49 | 6.85 | 5.87 |
| Date & Time | QIB | NII | RII | Total |
|---|---|---|---|---|
| Day 1 - 12 Mar 2020 | 0.00 | 0.00 | 0.00 | |
| Day 2 - 13 Mar 2020 | 0.17 | 0.01 | 0.09 | |
| Day 3 - 16 Mar 2020 | ||||
| Day 4 - 17 Mar 2020 |
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IPO Allotment StatusRO Jewels Ltd IPO will open on 12/03 and close on 17/03.
RO Jewels Ltd IPO will list on .
The offer price of RO Jewels Ltd IPO is ₹36.
The lot size of RO Jewels Ltd IPO is 3000.
The Grey Market Premium (GMP) price of RO Jewels Ltd IPO is Not Available at the moment.
The Kostak price of RO Jewels Ltd IPO is Not Available at the moment.
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