Pure Giftcarat BSE SME IPO review (Apply at your own risk)

Review By Dilip Davda on Apr 21, 2017

Pure Giftcarat Ltd (PGL) erstwhile known as L'avace Dirays Limited is primarily engaged in trading of bullion, diamond, pearls and precious stones, jewels, gold, silver, platinum and precious or semi-precious metals, ornaments, jewellery, articles of value made partly or fully of above mentioned materials, stones or metals. Currently the company is engaged in trading and retailer ship of diamonds in Surat. Its operations include sourcing of Diamonds from primary and secondary source suppliers in the domestic market and sale of diamond to the retail and wholesale operations in India.

To part finance its working capital requirement and general corpus fund needs, the company is coming out with a maiden IPO of 5730000 equity share of Rs. 10 each at a fixed price of Rs. 13 per share to mobilize Rs. 7.45 crore. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Issue opens for subscription on 26.04.17 and will close on 28.04.17. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by Navigant Corporate Advisors Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Company’s entire current paid up equity issue is done at par value. Its current paid up equity capital of RS. 15.89 crore will stand enhanced to Rs. 21.62 crore post issue.

On performance front, the company has posted turnover/net profits of Rs. 4.23 cr. / Rs. (-0.03) cr. (FY13), Rs. 1.57 cr. / Rs. (-0.01) cr. (FY14), Rs. 0.51 cr. / Rs. 0.02 cr. (FY15) and Rs. 45.39 cr. / Rs. 0.08 cr. (FY16). For nine months ended on 31.12.16 of the current fiscal, it has earned net profit of Rs. 0.12 cr. on a turnover of Rs. 85.57 cr. Thus sudden jump in turnover for past 21 months is surprising. If we annualize the latest earnings and attribute it on the fully diluted equity post issue then asking price is at a P/E of 185 plus and at a P/BV of 1.3. As per prospectus details, it has not listed peers to compare with.

On merchant banker’s front, this is the third mandate from its stable and from the earlier issues one issue gave positive returns on the listing day and the last IPO of KMS Medi is yet to be listed.

Conclusion: Considering aggressive pricing, only risk savvy cash surplus investors may invest in this IPO.


Conclusion / Investment Strategy

Considering aggressive pricing, only risk savvy cash surplus investors may invest in this IPO.

Review By Dilip Davda on Apr 21, 2017

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Pure Giftcarat IPO FAQs

  1. 1. Why Pure Giftcarat IPO?

    The initial public offer (IPO) of Pure Giftcarat Ltd offers an early investment opportunity in Pure Giftcarat Ltd. A stock market investor can buy Pure Giftcarat IPO shares by applying in IPO before Pure Giftcarat Ltd shares get listed at the stock exchanges. An investor could invest in Pure Giftcarat IPO for short term listing gain or a long term.

  2. 2. How is Pure Giftcarat IPO?

    Read the Pure Giftcarat IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Pure Giftcarat IPO what should investors do?

    Pure Giftcarat IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Pure Giftcarat IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Pure Giftcarat IPO good?

    Sorry, we didn't rate the Pure Giftcarat IPO.

  5. 5. Is Pure Giftcarat IPO worth Investing?

    Our lead analyst Mr. Dilip Davda didn't rate the Pure Giftcarat IPO.

  6. 6. When will Pure Giftcarat IPO allotment status?

    The Pure Giftcarat IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Pure Giftcarat IPO allotment status to check.

  7. 7. When will Pure Giftcarat IPO list?

    The Pure Giftcarat IPO will list on Monday, May 8, 2017, at BSE SME.








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