Nanavati Ventures Limited was incorporated in 2010. The company is engaged in the business of Diamond Trading. Nanavati Ventures Limited sells diamonds majorly to their domestic customer base, including jewellery manufacturers, retail stores, large department store chains and wholesalers. The headquarters of the company is located in Surat, Gujarat. In this article, we take a closer look at the Nanavati Ventures IPO Details and its possible future prospects.
The company carries out its business by purchasing rough and unpolished diamonds from its associated suppliers. The professional workers of the company carry out the processing and polishing of these rough gemstones to make the end product. The company’s end products are sold and distributed through the distribution network that the company has established and via an independent sale.
The Competitive Strengths of the company are as follows:
- Nanavati Ventures Limited has established itself as a well-established brand.
- The company has been highly benefitted from its Management and Employee expertise. It also has In-House Designers that help them to create beautiful Diamond designing.
- The company also make customized products as per the needs and the understanding of their customers.
- Nanavati Ventures Limited has Existing distribution and sales networks with a wide presence in the domestic market that provides them with a geographical benefit.
- The company has been verified and approved by ISO Quality Standards for its end products.
Apart from these competitive strengths, the company has some downfalls also, some of which are as follows:
- The company’s business operation and its sector of operation is a highly competitive sector. The company faces stiff competition from many organized and well-established brands. Also, the coming up of many unorganized and growing firms in this sector makes the sector highly competitive.
- The company’s financial performance is not on par with the asking price in the IPO.
- The company has a very small equity base even after post IPO. It indicates that the company have to face a longer gestation period for its migration to the mainboard.
- After annualizing the earnings associated with the FY22, post-IPO, the fully diluted equity capital is very low, and the company’s asking price is at a Price to Earnings ratio of 61.73, which is very high in comparison to the other companies engaged in the sector.
OBJECTS OF THE IPO ISSUE:
- Prepayment of all the earlier outstanding loans of the company, which be availed on a consolidated basis.
- To meet the general corporate targets.
- To fund the working capital requirement along with the expenditures.
NANAVATI VENTURES IPO DETAILS:
After getting approval from SEBI to float their IPO in the market. Nanavati Ventures Limited is coming up with their IPO of 436000 equity shares via issuance of fresh equity to raise funds of Rs. 2.18 Crores. The company stated that it would utilize around Rs from the funds raised via the IPO offer. 1.73 crores for funding its working capital and the remaining Rs. 0.25 crores for general corporate purposes. Post allotment of the equity shares in the IPO, the company’s stock will trade on the BSE – SME platform. The company further stated that the IPO issue constitutes around 26.49% of the company’s post-issue fully paid-up capital. The company also stated that the post-IPO, the company’s current fully paid-up equity capital would enhance to Rs. 1.65 cr. Based on the IPO valuations and the price offered by the company, the company’s market capitalization will be Rs. 8.23 crores. Check Day by Day IPO Subscription Details (Live Status)
| IPO Opening Date | April 25, 2022 |
| IPO Closing Date | April 27, 2022 |
| Issue Type | Fixed Price Issue Type IPO |
| Face Value | Rs. 10 per equity share |
| IPO Price | Rs. 50 per equity share |
| Market Lot | One lot of 3000 Equity Shares |
| Minimum Order Quantity | 3000 Equity Shares |
| Minimum Order Price | Rs. 150,000 |
| Maximum Order Quantity | 3000 Equity Shares |
| Maximum Order Price | Rs. 150,000 |
| Listing At | BSE – SME |
| Issue Size | 436,000 Equity Shares of the company that corresponds to Rs. 2.18 Crores. |
| Fresh Issue | 436,000 Equity Shares of the company that corresponds to Rs. 2.18 Crores. |
| Retail Shares Offered | 50% of the net offer |
| NII (HNI) Shares Offered | 50% of the net offer |
| Basis of Allotment Date | May 2, 2022 |
| Initiation of Refunds | May 4, 2022 |
| Credit of Shares to Demat Account | May 5, 2022 |
| IPO Listing Date | May 6, 2022 |
FINANCIAL TRENDS OF NANAVATI VENTURES IPO:
| PARAMETER | MARCH 21 | MARCH 20 | YoY % |
| Earnings Per Share (Rs) | 0.98 | 54.63 | -98.20 |
| CEPS (Rs) | 1.09 | 55.03 | -98.02 |
| DPS (Rs) | 0.00 | 0.00 | 0.00 |
| Book NAV/Share (Rs) | 51.00 | 51.81 | -1.56 |
| Tax Rate (%) | 24.41 | 29.35 | -16.83 |
| Core EBITDA Margin (%) | 0.85 | 1.31 | -34.93 |
| EBIT Margin (%) | 1.41 | 1.30 | 8.26 |
| Pre – Tax Margin (%) | 1.40 | 1.30 | 7.89 |
| PAT Margin (%) | 1.06 | 0.92 | 15.43 |
| Cash Profit Margin (%) | 1.17 | 0.92 | 26.96 |
| ROA (%) | 2.51 | 2.31 | 8.46 |
| ROE (%) | 3.83 | 223.01 | -98.28 |
| ROCE (%) | 5.08 | 315.65 | -98.39 |
| Asset Turnover (x) | 2.37 | 2.52 | -6.03 |
| Sales/Fixed Asset (x) | 296.99 | 290.29 | 2.31 |
| Working Capital/Sales (x) | 1.83 | 185.96 | -99.01 |
| Fixed Capital/Sales (x) | 0.00 | 0.00 | -2.26 |
| Receivable days | 88.55 | 158.56 | -44.15 |
| Inventory Days | 0.03 | 0.00 | 0.00 |
| Payable days | 53.16 | 145.98 | -63.58 |
| EV/Net Sales (x) | 0.10 | -0.04 | 338.03 |
| EV/Core EBITDA (x) | 6.66 | -3.26 | 304.39 |
| EV/EBIT (x) | 7.21 | -3.28 | 319.88 |
| EV/CE (x) | 0.17 | -0.09 | 294.40 |
| Net Sales Growth (%) | 88.90 | 973.54 | -90.87 |
| Core EBITDA Growth (%) | 119.99 | 0.00 | 0.00 |
| EBIT Growth (%) | 104.50 | 0.00 | 0.00 |
| PAT Growth (%) | 118.05 | 0.00 | 0.00 |
| EPS Growth (%) | -98.20 | 0.00 | 0.00 |
| Total Debt/Equity (x) | 0.00 | 0.00 | 0.00 |
| Current Ratio (x) | 14.19 | 1.01 | 1303.31 |
| Quick Ratio (x) | 14.19 | 1.01 | 1303.09 |
| Interest Cover (x) | 286.35 | 0.00 | 0.00 |
| Particulars (in Lakhs) | Dec 21 | Mar 21 | Mar 20 | Mar 19 |
| Sales | 1,042 | 1,124 | 595 | 55 |
| Purchases of Stock in Trade | 1,465 | 1,087 | 398 | 230 |
| Change in Inventories | -457 | -0.10 | 185 | -176 |
| Employee Benefits Expense | 23 | 16 | 4 | 1 |
| Other Expenses | 4 | 12 | 0.85 | 0.21 |
| Operating Profit | 7 | 9 | 7 | 0 |
| OPM % | 0.67% | 0.81% | 1.20% | -0.38% |
| Other Income | 7 | 8 | 0 | 0 |
| Depreciation | 1.40 | 1.29 | 0 | 0 |
| Profit before tax | 13 | 16 | 8 | 0.06 |
| Total Tax Exps | 3.00 | 3.81 | 2.34 | 0.02 |
| Net Profit | 9.98 | 11.97 | 5.39 | 0.03 |
| NPM % | 0.96% | 1.06% | 0.91% | 0.05% |
| No. of shares | 16.46 | 16.46 | 16.46 | 16.46 |
| EPS | 0.60 | 0.72 | 0.32 | 0.001 |
| Particulars | For the year ending with the amount as in Rs in Lakhs | ||||
| 31 Dec 21 | 31 Mar 21 | 31 Mar 20 | 31 Mar 19 | ||
| Total Assets | 1417.95 | 663.55 | 286.88 | 186.62 | |
| Total Revenue | 1049.52 | 1131.70 | 595.10 | 55.51 | |
| Profit After Tax | 9.98 | 11.97 | 5.39 | 0.03 |
VALUATIONS OF NANAVATI VENTURES IPO:
| Earnings Per Share / EPS: | Rs. 99.67 per Equity Share |
| Price/Earnings or also known as P/E Ratio: | 68.76 |
| Return on Net Worth / RoNW: | 1.94% |
| Net Asset Value / NAV: | 51.00 per Equity Share |
COMPARISON WITH PEERS:
| Name of the company | EPS of the company | P/E Ratio | Revenue (Rs. In Lakh) |
| Nanavati Ventures Limited | 0.72 | 70 | 1124 |
| Narbada Gems and Jewellery Ltd. | 1.34 | 35 | 3,801 |
| Tribhovandas Bhimji Zaveri Limited | 6.48 | 10.95 | 134,199 |
Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
COMPANY PROMOTERS:
The promoters of the company are as follows:
- Mrs Kashmira Hemant Kumar Nanavati,
- Mr Shreykumar Hasmukh Bhai Sheth
- Ms Vaishnavi Hemant kumar Nanavati
| Pre – Issue Share Holding | 71% |
| Post Issue Share Holding | 52.19% |
COMPANY CONTACT INFORMATION:
Nanavati Ventures Limited
S-414, OM Plaza,
Adarsh App. Co. Op. Ho. Soc., Village: Vijalpor,
Taluka: Jalalpore, Navsari 396445
Phone: +91 9316691337
Email: info@nventures.co.in
Website: http://www.nventures.co.in/
LEAD MANAGERS OF NANAVATI VENTURES IPO:
FIRST OVERSEAS CAPITAL LIMITED
1-2 Bhupen Chambers, Ground Floor, Dalal Street,
Mumbai-400 001, Maharashtra, India.
Tel. No.: +91 22 40509999
Fax No.: N.A.
Email: satish@focl.in/ mala@focl.in
Investor Grievance Email: investorcomplaints@focl.in
Website: www.focl.in
Contact Person: Mr Satish Sheth/ Ms. Mala Soneji
SEBI Registration No.: INM000003671
REGISTRAR TO THE OFFER:
KFIN TECHNOLOGIES PRIVATE LIMITED
Selenium Tower -B, Plot 31-32, Gachibowli, Financial District, Nanakramguda,
Serilingampally, Hyderabad-500 032, Telangana, India.
Tel. No.: +91 40 6716 2222
Fax No.: +91 40 2343 1551
E-mail: nvl.ipo@kfintech.com
Investor Grievance Email: einward.ris@kfintech.com
Website: www.kfintech.com
Contact Person: Mr M Murali Krishna
SEBI Registration No.: INR000000221
