Divine Hira Jewellers Limited is coming up with an IPO with a fresh issue of 35,37,600 shares worth INR 31.84 crores. The company aims to fund the working capital requirements, repay the existing borrowings and meet general corporate purposes. 

Divine Hira IPO – Important Dates

Divine Hira Jewellers Limited IPO – Company Profile

Divine Hira Jewellers Limited is engaged in the business of designing and marketing of gold jewellery. The company mainly deals in 22 Karat gold jewellery, offering a wide variety of designs to suit the preferences of the end customer.

The company creates localised product design mixes to suit various tastes. They cater to the customer’s unique preferences, through the understanding of the local and regional market. They provide an extensive range of designs. They are engaged in the wholesale of gold jewellery, silver articles, bullions and coins in Mumbai, Maharashtra. 

The company operates from Zaveri Bazar, Mumbai, a market known for bullion and jewellery. It has been operating from the same registered office since incorporation. The Promoters, Hirachand Gulecha and Niraj Gulecha have around 30 years and 10 years of experience in the Gold and Jewellery industry.

Divine Hira Jewellers Ltd IPO Fundamental Analysis

Divine Hira Jewellers’ financial performance exhibits mixed trends, with improving profitability and equity growth but declining revenue and fluctuating efficiency ratios. Here’s a detailed breakdown:

Revenue Trend: The revenue declined from ₹24,644.58 lakh in March 2023 to ₹18,325.61 lakh in March 2024. However, for the first half of FY25, revenue stands at ₹13,597.69 lakh, indicating a potential recovery. If the trend continues, the company may achieve higher revenue for the full FY25 than FY24.

Equity and Liabilities: Equity has shown a consistent increase over the periods, from ₹831.84 lakh (FY23) to ₹1,229.83 lakh (H1FY25), reflecting potential growth and expansion. The debt-to-equity ratio has decreased from 1.90 (FY24) to 1.04 (H1FY25), indicating reduced reliance on debt financing.

Profitability: The profit after tax (PAT) has increased from ₹91.23 lakh in March 2023 to ₹148.17 lakh in March 2024, and further to ₹249.83 lakh in September 2024, boosting investor confidence.

Earnings per Share (EPS): The diluted EPS increased from ₹0.96 in March 2023 to ₹1.56 in March 2024, reflecting higher earnings per share for investors. The EPS for the first half of FY25 stands at ₹2.63, indicating strong growth potential.

Return on Net Worth (RoNW): The RoNW has improved from 16.12% in March 2023 to 20.31% in September 2024, indicating increased profitability and efficient capital utilization.

Financial Position: Total assets have increased, suggesting potential business growth. However, the inventory turnover ratio has declined from 17.44 (FY24) to 9.65 (H1FY25), which may indicate slower inventory movement, affecting cash flow. The current ratio has improved from 1.50 (FY24) to 1.75 (H1FY25), reflecting better liquidity.

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Divine Hira Jewellers IPO Financial Analysis

Divine Hira Jewellers Limited IPO Peer Comparison

Divine Hira Jewellers Limited, with ₹18,325.61 lakhs revenue, ₹1.56 EPS, and 16.36% RoNW, lags behind Sky Gold Limited, which reports ₹1,74,548.42 lakhs revenue, ₹35.18 EPS, and 23.66% RoNW, showcasing superior profitability.

Divine Hira Jewellers Ltd IPO Objective

Divine Hira Jewellers plans to utilize INR 19.00 crores from net proceeds for working capital needs, INR 3.00 crores for debt repayment, and the remaining funds for strategic initiatives, branding, marketing, and business expansion.

1. Funding working capital requirements: The business of the company is working capital intensive. The company intends to utilise INR 19.00 crores from Net Proceeds to meet its working capital requirement.

2. Repay borrowings of the company: The company plans to repay either in full or part the existing borrowings. The company plans to utilise INR 3.00 crores from Net Proceeds for the said purpose.

3. General Corporate Purpose: The company will deploy the remaining amount for general corporate purposes, including strategic initiatives, partnerships, acquisitions, branding, marketing, facility upgrades, client referrals, and other business needs.

Divine Hira Jewellers IPO Risks And Challenges

Divine Hira Jewellers derives 96% of its revenue from 10 customers, posing a risk if any major client is lost. Seasonal fluctuations and reliance on job workers may also impact operations, financials, and overall business stability.

1. Almost 96% of the revenue of the company is dependent on 10 customers. The loss of any significant clients may have an adverse effect on the business, financial condition, results of operations, and prospects.

2. The company’s income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on the results of operations.

3. The dependency on job workers or Karigars for the performance of the operation may adversely affect the business.

Divine Hira Jewellers Ltd IPO – Industry & Market Potential

In the fiscal year 2023-24, India experienced a significant decline in its gems and jewellery exports by 14.94%, amounting to US$32.02 billion compared to US$37.6 billion in the previous year. The gem and jewellery sector saw a decline of 12.17% in rupee terms. Import figures also reflected a decrease, with a decline of 11.09% in rupee terms.

Conversely, gold jewellery exports exhibited a positive growth rate of 16.97%, amounting to $11140.780 million, attributed partly to increased exports facilitated by free trade agreements with UAE and Australia. Silver jewellery exports experienced a notable decline of 45%, while platinum jewellery exports surged by 449.52%. Coloured gemstone exports demonstrated a growth rate of 13.94%, reaching $478.68 million.  

Divine Hira Jewellers Limited IPO – Type of Offer

Divine Hira Jewellers Limited is launching an IPO with a fresh issue of 35,37,600 shares worth INR 31.84 crores. The proceeds will be used for working capital, debt repayment, and general corporate purposes.

Divine Hira Jewellers IPO Offer Size

The offer size of Divine Hira Jewellers IPO is INR 31.84 crores with a fresh issue of 35,37,600 shares. The proceeds will be used for working capital, debt repayment, and general corporate purposes.

Divine Hira Jewellers Limited IPO Allotment Structure

Divine Hira Jewellers Limited’s allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 3,15,600 shares for Market Makers. 

• Retail Individual Investors (RII): 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 Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 3,15,600 shares for this purpose. 

 How to apply for the Divine Hira Jewellers IPO?

To apply for the Divine Hira Jewellers Limited IPO through Alice Blue, 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.

1. Check for IPO Details: Once your account is active, you can check for the Divine Hira Jewellers Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Divine Hira Jewellers Limited 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 do you check Divine Hira Jewellers IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. 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.
3. 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.
4. Select the Divine Hira Jewellers Limited 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 Divine Hira Jewellers Limited IPO.
5. 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 to 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 Divine Hira Jewellers Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Divine Hira Jewellers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange’s (BSE) Small Medium Exchange (SME) Platform. You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Divine Hira Jewellers Ltd IPO Offer Registrar

The registrar for the Divine Hira Jewellers Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

BIGSHARE SERVICES PRIVATE LIMITED 

Office No. S6-2, 6th floor, Pinnacle Business Park,

Next to Ahura Centre, Mahakali Caves Road, (East)

Andheri, Mumbai – 400 093, Maharashtra, India.

Email: ipo@bigshareonline.com 

Website: www.bigshareonline.com

Divine Hira Jewellers IPO – FAQs 

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.