Sagar Diamonds Ltd IPO is about to debut on 14 September 2017, with an issue size of 15.21CR. Sagar Diamonds Ltd is a company that was incorporated in 2015, involved in the production and exportation of rough and polished diamonds. They also engage in jewellery making and marketing, selling a wide range of jewellery products that cater to diverse customer segments, from the value market to high-end customized jewellery. Their product range includes carefully handcrafted items such as rings, chains, mangalsutras, earrings, and necklaces.
The company operates independent sales and distribution networks for their products. The majority of their cut and polished diamonds are exported to diamond wholesalers and jewellery manufacturers in the export markets. They procure diamonds from both domestic and international suppliers based on their specific needs and requirements.
Sagar Diamonds Ltd’s manufacturing facility is located in Sachin (S.E.Z), Gujarat, covering an approximate area of 1,000 sq. ft. As of March 31, 2017, this facility had the capacity to produce 35,000 grams of gold and silver jewellery per month.
Industry Overview
India’s gems and jewellery industry has a significant impact on the country’s economy, contributing a major share to its foreign reserves. With UAE, US, Russia, Singapore, Hong Kong, Latin America, and China being the major importers of Indian jewellery, the industry’s exports to the US increased by 7.81% year-on-year during October-December 2016, owing to the revival of economic activity in the US. As per GJEPC, the overall net exports of Gems & Jewellery during April-December 2016 stood at Rs 175,879.24 crore (US$ 26.28 billion), with cut and polished diamonds accounting for Rs 113,171.17 crore (US$ 16.91 billion) of the total. Furthermore, the exports of gold coins and medallions stood at Rs 25,819.48 crore (US$ 3.86 billion) and silver jewellery at Rs 18,010.72 crore (US$ 2.69 billion) during the same period. The report by Research and Markets forecasts that the Indian jewellery market will grow at a Compound Annual Growth Rate (CAGR) of 15.95% over the period of 2014-2019. Considering the increasing demand in the US and Europe, GJEPC expects the gems and jewellery exports to witness a growth of around 10% this fiscal year.
Sagar Diamonds IPO Details
| IPO Date | Sep 14, 2017 to Sep 18, 2017 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹40 to ₹45 per share |
| Lot Size | 3000 Shares |
| Total Issue Size | 3,381,000 shares(aggregating up to ₹15.21 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
Company Financials
| FY2016 | FY2017 | Period ended 20 June 2017 | ||||
| Total revenue | – | 999.9 | 1,045.0 | |||
| Total expenses | 0.2 | 949.8 | 1,001.4 | |||
| Profit after tax | -0.2 | 34.7 | 30.0 |
Objects of the Issue
The Objects of the Issue are:
1. To Meet working capital requirement;
2. To meet the Issue Expenses; and
3. To meet General corporate purpose.
Sagar Diamonds IPO Prospectus
Company Contact Information
Sagar Diamonds Ltd
Unit No 101 Plot No 193,
SEZ Diamond Park Sachin,
Surat – 394230
Phone: + 91-261-2397866
Email: cs@sagardiamonds.com
Website: http://www.sagardiamonds.com
Sagar Diamonds IPO Registrar
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: https://www.bigshareonline.com/
Sagar Diamonds IPO Lead Manager(s)
- Gretex Corporate Services Pvt Ltd (Past IPO Performance)
