Davin Sons is coming up with an IPO offering 15,96,000 fresh equity shares of the company, aggregating to INR 8.78 crores. The company intends to use the funds raised to purchase warehouses, meet working capital expenditure and general corporate expenses.
Davin Sons IPO – Important Dates
| Davin Sons IPO Date | January 2, 2025 to January 6, 2025 |
| Davin Sons IPO Listing Date | January 9, 2025 |
| Davin Sons IPO Price | INR 55 per share |
| Davin Sons IPO Lot Size | 2000 Shares |
| Davin Sons IPO Total Issue Size | INR 8.78 crores |
| Davin Sons IPO Basis of Allotment | January 7, 2025 |
| Davin Sons IPO Initiation of Refunds | January 8, 2025 |
| Davin Sons IPO Credit of Shares to Demat | January 8, 2025 |
| Davin Sons IPO Issue Type | Fixed Price Issue |
| Davin Sons IPO Listing At | BSE SME |
Read more about Davin Sons Retail Limited IPO GMP
Davin Sons Retail Limited IPO – Company Profile
The Company is led by its Promoters Mr Mohit Arora and Mr Nohit Arora, who have been in the field of garment designing, manufacturing and trading for more than 10 years. Mr. Mohit Arora established a proprietorship concern in the name and style of M/s. Jesus Shirts, in 2012, along with his brother, Mr. Nohit Arora. Davin Sons Retail Limited was incorporated in 2022 to do the business, which was done in a proprietary firm.
The Company has two business verticals:
1. Manufacturing of readymade Garments through job work basis;
2. Distribution of FMCG products.
The company occasionally outsources the entire garment manufacturing process to third-party contractors on a job-work basis. It provides the technical specifications, such as designs, patterns, quality, fabric, etc., to those who procure the requisite raw materials and begin the manufacturing process based on the specifications.
Davin Sons Retail Ltd IPO Fundamental Analysis
Davin Sons Retail shows strong historical growth, improved financial stability, and efficient expense management. However, declining RoNW and slower growth in H1 FY2025 raise concerns about future performance.
Revenue Growth:
The company has demonstrated impressive revenue growth in FY2024. H1 FY2025 revenue is 46.9% of FY2024 revenue, suggesting a steady growth trend.
Profitability:
Profitability improved significantly in FY2024. However, annualising H1 FY2025 PAT projects ₹147.18 lakhs, indicating a potential dip in annual performance.
Return on Net Worth (RoNW):
RoNW decline reflects increased equity and reduced efficiency in generating returns.
Earnings Per Share (EPS):
EPS growth aligns with profitability. Annualising H1 FY2025 EPS suggests a slight decline compared to FY2024.
Net Asset Value (NAV) per Equity Share:
The significant NAV increase reflects shareholder value creation, with continued growth in H1 FY2025.
Asset and Liability Management:
Asset growth highlights investments in scaling operations, supporting long-term growth potential. Liabilities were controlled in FY2024 but increased in H1 FY2025, signalling potential borrowing or operational liabilities.
Davin Sons IPO Financial Analysis
| Particular | As of 31 March 2023 | As of 31 March 2024 | As of 30 September 2024 |
| Revenue (₹ in lakhs) | 383.14 | 1,339.16 | 628.42 |
| Equity (₹ in lakhs) | 109.37 | 555.49 | 629.09 |
| Expenses (₹ in lakhs) | 314.89 | 1,118.69 | 535.27 |
| Profit and Loss After Tax (₹ in lakhs) | 51.62 | 164.05 | 73.59 |
| RoNW (%) | 51.77 | 29.58 | 11.72 (not annualised) |
| Diluted EPS only (₹) | 1.82 | 4.63 | 2.01 (not annualised) |
| NAV per Equity Share (₹) | 3.53 | 15.65 | 17.12 |
| Total Assets (in lakhs) | 455.97 | 883.12 | 1,036.20 |
| Total Liabilities (in lakhs) | 346.60 | 327.63 | 407.11 |
Davin Sons Retail Limited IPO Peer Comparison
Davin Sons Retail Limited is mainly engaged in the business of manufacturing readymade garments through job work basis and distributorship of FMCG products, and there is no listed peer group company which are strictly comparable to the company with respect to the industry and business segment in which the company operates.
Davin Sons Retail Ltd IPO Objective
Davin Sons Retail plans to utilise INR 1.36 crores to establish a warehouse, expanding its geographical presence, INR 4.22 crores for working capital requirements, and remaining funds for general corporate purposes.
- Purchase warehouse: The company intends to increase revenue by expanding the existing consumer base and adding more consumers by establishing more footprints in other highly populated states to expand its geographical presence and enter the large domestic market for growth opportunities. The company proposes to utilise up to Rs. 1.36 crores towards capital expenditure for the setup of a warehouse.
- To fund the working capital requirement: The company proposes to utilise up to INR. 4.22 crores of the net proceeds to meet its estimated working capital requirements. This will be utilised to meet the company’s working capital requirements.
- General corporate purposes: The company will deploy funds for general corporate purposes and target synergies benefiting from management expertise, R&D, manufacturing, and distribution network.
Davin Sons IPO Risks And Challenges
Davin Sons faces risks from outstanding litigation that may impact reputation and operations. Heavy reliance on top 10 customers poses revenue vulnerability, and past negative cash flows highlight potential financial challenges ahead.
- There are outstanding litigation proceedings involving the Company, the Promoters and/ or the Directors, an adverse outcome which may have an adverse impact on the reputation, business, financial condition, results of operations and cash flows.
- The top 10 customers contribute the majority of the revenues from operations. Any loss of business from one or more of them may adversely affect the revenues and profitability.
- The company has experienced negative cash flows, and any negative cash flows in the future could adversely affect the financial conditions and results of operations.
Davin Sons Retail Ltd IPO – Industry & Market Potential
The outlook of the FMCG sector looks on track with the pandemic easing out. Rural consumption has increased, led by a combination of increasing income and higher aspiration levels. There is an increased demand for branded products in rural India.
On the other hand, with the share of the unorganised market in the FMCG sector falling, the organised sector growth is expected to rise with an increased level of brand consciousness, augmented by the growth in modern retail. The FMCG market in India is expected to grow at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020.
India is among the top garment-manufacturing countries in the world. Indian textiles and apparel products have a history of fine craftsmanship across the entire value chain, from fibre, yarn, and fabric to apparel with high global appeal. India is the sixth largest exporter of textiles and apparel products in the world, and it has a massive raw material and manufacturing base. Narendra Modi’s government is targeting US$ 250 billion in textile production and exports of US$ 100 billion by 2030.
Davin Sons Retail Limited IPO – Type of Offer
Davin Sons is launching an IPO with 15,96,000 fresh equity shares worth INR 8.78 crores. The proceeds will fund warehouse purchases, working capital requirements, and general corporate expenses.
Davin Sons IPO Offer Size
The offer size for Davin Sons IPO is INR 8.78 crores, comprising 15,96,000 fresh equity shares. The funds will be utilised for warehouse purchases, working capital requirements, and general corporate expenses.
Davin Sons Retail Limited IPO Allotment Structure
Davin Sons Limited’s IPO allotment structure includes categories for retail individual investors (RII), non-RIIs with application values exceeding INR 2 lakhs, and a reservation for market makers for 80,000 shares.
Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
Market Maker Reservation: 80,000 shares are reserved for market makers.
How to apply for Davin Sons IPO through Alice Blue?
To apply for the Davin Sons IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Davin Sons IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Davin Sons IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Davin Sons IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Davin Sons IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Davin Sons IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Davin Sons IPO:
● Registrar’s Website: Visit the website of KFIN Technologies Limited, the registrar of the Davin Sons IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Davin Sons Ltd IPO Offer Registrar
The registrar for the Davin Sons Limited IPO is KFIN Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN Technologies Limited
Selenium, Tower-B, Plot 31& 32,
Gachibowli Financial District
Nanakramguda, Hyderabad – 500032,
Telangana, India
Telephone: +91-40-6716-2222
Website: www.kfintech.com
Davin Sons Ltd IPO FAQs
What is the allotment date of the Davin Sons IPO?
The allotment date of Davin Sons IPO is January 7, 2025.
What is the price band of Davin Sons IPO?
The price band of Davin Sons IPO is INR 55 per share.
What is the size of the Davin Sons IPO?
The offer size for Davin Sons IPO is INR 8.78 crores, comprising 15,96,000 fresh equity shares. The funds will be utilised for warehouse purchases, working capital requirements, and general corporate expenses.
What is the listing date of the Davin Sons IPO?
The listing date of Davin Sons IPO is January 9, 2025.
Where is the Davin Sons IPO Getting Listed?
Davin Sons is getting listed on the SME (Small Medium Enterprise) Platform of the Bombay Stock Exchange (BSE).
What are the open and close dates of the Davin Sons Limited IPO?
The open and close dates of Davin Sons Limited are January 2, 2025, and January 6, 2025, respectively.
How to apply for Davin Sons Ltd IPO in Alice Blue?
To apply for the Davin Sons Limited IPO through Alice Blue, open a Demat and Trading account, check IPO details, place your bid, and submit your application. After allotment, check your status. Share allotment depends on IPO demand.
Who is the Book Runner for the Davin Sons IPO?
The Book Runner for Davin Sons is Navigant Corporate Advisors Limited.
