U H Zaveri IPO – Review, Allotment Status, Subscription, Price, Date & more

After Kalyan Jewellers, another jewellery company – U H Zaveri is coming up with an IPO (from May 8, 2018 – May 14, 2018). The company falls under the SME section and plans to raise funds worth Rs. 7 crores and U H Zaveri IPO will constitute almost 35%+ of the post issue paid up capital of the this company.

Lets read this article to know more details about this IPO like the IPO date, IPO offer price, basis of IPO offer price, company promoters, company background, company financials etc.

• Issue Price of this IPO is Rs 36. Check the Live Share Price here UH Zaveri Share Price
• To track the performance of this IPO, click on this link – IPO Performance

U H Zaveri IPO Review & Ratings

Summary of U H Zaveri IPO

U H Zaveri, set up in Gujarat in 2017, is a gems & jewellery company. The business operations are into wholesale and retail of jewellery and into trading of jewellery.

The company does not manufacture its own jewellery and hence, the making of jewellery is outsourced. However, the jewellery sold by it is either designed in house or through 3-D jewellery designer or by third party designers or it purchases ready to sell jewellery directly from manufacturers.

Jewellery company is coming up with an IPO of Rs. 7 crores. The company has been promoted by Mr. Hitesh Shah, Mahendrakumar Shah and Sunitaben Shah. U H Zaveri is offering 22.20 lac equity shares with a face vaue of Rs. 10 each. Certain portion of this offer will be reserved for subscription by the market makers and balance will be available for the company to subscribe.

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U H Zaveri IPO Date

As per the BSE website, the IPO for U.H. Zaveri will be open on 8th May 2018 and will remain open untill 14 May 2018.

U H Zaveri IPO Subscription

Once the IPO is open for subscription, the details of the shares subscribed will be updated herein.

U.H. Zaveri IPO Allotment Status

Allotment will be done once the subscription period is over. The details of subscriptions made by the public will be updated herein

U H Zaveri IPO Price Band

The company has fixed up an offer price of Rs. 36 per share which includes premium element of Rs. 26 over the face value of Rs. 10 each share. The basis of fixing the offer price has been discussed in the later sections of this article.

U H Zaveri IPO Issue Size

The company is coming up with an IPO size of Rs. 799.20 lacs i.e. close to Rs. 8 crores.

U H Zaveri IPO Equity Share Offerings

U H Zaveri IPO carries 22.20 lacs equity shares of which 1.14 lacs shares have been reserved for the market makers. The total offer made represents 36.60% of the post issue capital of the company.

U.H. Zaveri Limited – Company Overview

Company was originally incorporated as U. H. Zaveri Private Limited on August 28, 2017. The company has been incorporated as a gems & jewellery company. Their business operations are divided into two divisions.

One division of our business operations is into wholesale and retail of jewellery and the second division is into trading of jewellery. The company mainly sells gold jewellery and marginal percentage of our revenue is earned through silver jewellery and other kind of jewellery and utensils.

The company does not manufacture its own jewellery and hence, the making of our jewellery is outsourced. However, the jewellery sold by them is either designed in house or through 3-D jewellery designer or by third party designers or we purchase ready to sell jewellery directly from manufacturer.

Their showroom has a unique collection of contemporary, antique, kundan, polka and temple jewellery. In addition to this, they also sell customized jewellery, gold and silver jewellery articles that are available in a variety of attractive patterns & designs and can be procured within reasonable price ranges.

Their products have presence across different price points and cater to customers across high-end, mid-market and value market segments.

Key members of U.H. Zaveri Limited:

• Hitesh M. Shah, Managing Director
• Sunitaben H. Shah, Non Executive Director
• Mahendrakumar H. Shah, Executive Director

Competitive Strengths of U.H. Zaveri Limited:

• Quality Products
• Use of efficient internal processes to leverage sales
• Wide Range of designs

Business strategy of U.H. Zaveri Limited:

• Focus on Quality and Innovation
• Enhancing existing production and product quality
• Enhancing Operating Effectiveness and Efficiency
• Leveraging our Marketing skills and Relationship

U.H. Zaveri – Financial Statements

Lets have a quick look into the key financial figures of the company to analyse its performance. It may be noted that generally for evaluating a company, its performance over a span of years is analysed, but since the company has been into business not before 2017, the figures are being evaluated for only one year.

Assets of the Company

The company has non-current i.e. fixed asset base of Rs. 13.14 lacs as on 31 January 2018. The current assets sum up to Rs. 879 lacs thereby making a total asset base of Rs. 892.14 lacs.

Revenue & PAT of the Company

The company has earned a revenue to the tune of Rs. 1,389.35 for the period ending 31 Jan 2018. The resultant profit was Rs. 74.68 lacs which is almost 5% of the revenue.

Earnings per Equity Share

The non-annualised EPS for the period ending 31 January 2018 is Rs. 1.92.

U.H. Zaveri Promoters

The company, U.H. Zaveri, has been promoted by:

• Mr. Hitesh M. Shah
• Mrs. Sunitaben H. Shah
• Mr. Mahendrakumar H. Shah

Promoter Interest in the company

Promoter is interested in the Company to the extent of the shareholding in the Company and any dividend or other distribution payable, if any, by the Company. The promoters may also be deemed to be interested in their remuneration in the capacity of Director, MD of the company.

Promoter Interest in property of the company

Promoter does not have any interest in any property acquired by or proposed to be acquired by the Company two years prior to filing of the latest Prospectus.

U H Zaveri IPO Offer Details or Issue Details

U H Zaveri IPO Issue Object

The company plans to use the proceeds for meeting the working capital requirements after setting of the issue related expenses.

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U.H. Zaveri IPO – Basis of the Offer Price

The Issue Price is determined by the Company in consultation with the Lead Manager on the basis of the following qualitative and quantitative factors. The face value of the Equity Share is Rs. 10 and Issue Price is Rs.36/- per Equity Share and is 3.6 times the face value.

Qualitative factors influencing the offer price:

• Quality Products
• Use of efficient internal processes to leverage sales
• Wide Range of designs
• Experienced management & dedicated employee base
• Cordial Relationship with customers & customer satisfaction

Quantitative factors influencing the offer price:

• Earning per share – The company has been able to maintain a non-annulaised EPS of Rs. 1.41 per share for the period ended 31 January 2018.
• Price/earning ratio – The PE ratio works out to be 18.75 and the industry average PE is 35.45 with 62.50 being the highest and 5.70 being the lowest
• Return on Net Worth – The company has achieved RoNW of 12.87% and is required to maintain RoNW  of 3.33% to maintain same EPS post issue.
• Net Asset Value – NAV per Equity Share – The net asset value per equity share for period ending 31 January 2018 is 14.90 and post the issue , the NAV will be 22.55.
• Comparison of Accounting ratios with Industry peers – The listed peer group includes Goldiam Jewellery, Renaissance Jewellery and Uday Jewellery

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U H Zaveri IPO Lead Managers

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U H Zaveri IPO Grey Market Premium

Since the grey market for an IPO generally opens a fortnight before the release of the IPO, it is expected that the grey market has already started dealing with this security at a kostak rates. Since this trading is an unofficial one, the local traders would be the best source of identifying the grey market premium on this stock

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