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Divine Hira Jewellers Ltd IPO
Status: Closed
Overview
IPO date
17 Mar 2025 to 19 Mar 2025
Face value
₹ 10 per share
Price
₹ 90 per share
Issue Size
3,537,600 shares
(aggregating up to ₹ 31.84 Cr)
(aggregating up to ₹ 31.84 Cr)
Allotment Date
20 Mar 2025
Listing at
NSE
Issue type
Fixed Price - SME
Sector
Diamond, Gems and Jewellery
Objectives of Divine Hira Jewellers Ltd IPO
Public issue of 35,37,600 equity shares of face value Rs. 10 each ("Equity Shares") of the company for cash at a price of Rs. 90/- per equity share (including a securities premium of Rs. 80/- per equity share) (the "Issue Price"), aggregating to Rs. 31.84 crores ("Issue") of the issue, 1,77,600 equity shares aggregating to Rs. 1.60 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 33,60,000 equity shares of face value of Rs. 10 each at an issue price of Rs. 90/- per equity share aggregating to Rs. 30.24 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 27.11% and 25.75%, respectively of the post issue paid up equity share capital of the company.
The face value of the equity share is Rs. 10/- and the issue price is 9 times of the face value.
Divine Hira Jewellers Ltd IPO Strategy
- Strategic Plans for Exports.
- Augment its fund based capacities in order to scale up business operation.
- Focus on expanding its product and brand portfolio to cater to existing portfolio gaps and increase its consumer reach.
- Continue to focus on its existing customers.
- Enhancing Operating Effectiveness and Efficiency.
- Consistently meeting quality and purity.
About Divine Hira Jewellers Ltd
The Company Founder, Hirachand Gulecha, had started his journey in the silver business in 1984. In 1997, he started a proprietorship firm 'Hira Traders' and gradually entered the gold jewelry segment'. He involved in the business of Jewellery since 1984 and to expand the business further, he, along with his family, incorporated a Company, 'Divine Hira Jewellers Limited' as a Public Limited Company vide Certificate of Incorporation dated July 19, 2022 issued by the ROC, Mumbai, Maharashtra.
Company is engaged in business of manufacturing, making, buying and selling in ornaments, articles, bar, coins and jewellers of all kinds in Gold and Silver. It mainly deal in 22 Karat gold jewellery and provide extensive designs. Currently, it cater to a large number of wholesalers, showrooms and retailers who buy products in bulk quantities. The Company has acquired running business of M/s Hira Traders i.e. the HUF firm of the Promoter- Hirachand Gulecha effective in September, 2022.
Apart from these, the Company primarily sell gold jewelry including machine made, handmade & plain gold jewelry like necklace, mangalsutra, chains, malas, rings, pendants, bracelets, bangles, kada, coins and other wedding jewelleries. Their primary focus has been on purity and commitment.
The Company is planning a Public Issue upto 35,40,000 Equity Shares through Fresh Issue.
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T&C*
Strengths vs Risks of Divine Hira Jewellers Ltd
Know the pros & cons
Strengths
Experienced management and well trained and trustworthy employee base.- Wide Range of Products.
- Quality Control.
- Strong understanding of customer preference.
- Hallmarking and Unique Identification.
- Experienced Job Workers and Vendor Network.
- Design Innovation for Customers.
- Customer Satisfaction.
Risks
- Substantial portion of its revenues are dependent on few customers and the loss of, or a significant reduction in purchases by any one or more such customers could adversely affect its financial performance.
- The company dependence on few suppliers puts its at risk of interruptions in the availability of raw materials, which could adversely affect the company business, financial condition and results of operations. Further, the company has not entered into any long-term agreements with its suppliers for raw materials and accordingly may not be able to enjoy credit and other facilities provided by its existing suppliers.
- Its may be unable to obtain, renew or maintain statutory and regulatory permits, licenses and approvals required to operate its business which could result in an adverse effect on the company results of operations. Its require certain statutory and regulatory permits, licenses and approvals for the company business.
- The non-availability or high cost of quality gold bullion and coloured stones may have an adverse effect on its business, results of operations and financial condition.
- Its income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.
- The company does not register its jewellery design under the Designs Act, 2000 and the company may suffer a loss of income if its designs are duplicated by the company competitors. Moreover, its susceptible to litigation arising out of infringement of copyright of designs.
- The company generally do business with its customers on purchase order basis and does not enter into long term contracts with them. The company inability to maintain relationships with its customers could have an adverse effect on the company business, prospects, results of operations and financial condition.
- The company dependency on job worker or Karigars for the performance of its operation may adversely affect the company business.
- Any fluctuation and variation in price and supply of gold, which is a major raw material for the manufacture of its products, could adversely impact its income.
- The company faces significant competition. Any failures to compete effectively may have a material adverse effect on its business and operations.
- The company operates in limited geographies for a significant portion of its revenue and also depends on limited number of customers for the company revenue from operations. Projects in new geographies may not be as profitable as in existing geographies.
- Its may not be able to implement the company growth strategy successfully.
- Inventories and trade receivables form a substantial part of its current assets and net worth. Failures to manage the company inventory and trade receivables could have an adverse effect on its net sales, profitability, cash flow and liquidity.
- The company results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.
- The proposed objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any inability on its part to effectively utilize the Issue proceeds could adversely affect the company financials.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation could be adversely affected.
- Its may not be able to maintain the company current levels of profitability due to increased costs or reduced spreads or margins
- The company depends on the accuracy and completeness of information about customers and counterparties and any misrepresentation, errors in or incompleteness of such information could cause its business to suffer.
- There are outstanding litigations involving the Company, its Promoters and Directors which, if determined adversely, may affect its business and financial condition.
- The company is dependent on job workers for manufacturing some of its inventory. Any deterioration in the quality of products procured from the company suppliers, may adversely impact its business operations.
- The Company proposes to utilize part of the Net Proceeds for repayment or pre-payment, in full or in part, of all or certain secured borrowings availed by its Company and accordingly, the utilization of that portion of the Net Proceeds will not result in creation of any tangible assets.
- Failures to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow and liquidity.
- Any adverse change in regulations governing its products, may adversely impact the company business prospects and results of operations.
- The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
- The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company business. Further, if its unable to adapt to technological changes and successfully implement new technologies or if the company faces failures of the company information technology systems, its may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.
- The company may be unable to grow its business in additional geographic regions or international markets, which may adversely affect its business prospects and results of operations.
- Demand for its products is subject to rapid and unpredictable changes in fashion trends and consumer preferences, and the company inability to anticipate and address such changes may adversely affect its business prospects, results of operations and financial condition.
- If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.
- The average cost of acquisition of Equity Shares held by its Promoters is lower than the Issue Price.
- Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than
reimbursement of expenses incurred or normal remuneration or benefits.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
- Its future fund requirements, in the form of further Issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- Its success largely depends upon the knowledge and experience of the company Promoters, Directors and its Key Managerial Personnel. Loss of any of the company Directors and key managerial personnel or its ability to attract and retain them could adversely affect its business, operations and financial condition.
- Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.
- Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.
- Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
- The requirements of being a listed company may strain its resources.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.
- There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.
- There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
- The price of the Equity Shares may be highly volatile after the Issue.
- Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in the Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
- You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
- There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
- The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.
- Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.
- Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
Divine Hira Jewellers Ltd Peer Comparison
Understand the company’s industry standing
Divine Hira Jewellers Ltd
Sky Gold Ltd
Face Value
10
10
Standalone / Consolidated
Standalone
Consolidated
Total Income Rs. Cr.
183.2561
1745.4842
EPS-Basis
1.56
35.18
EPS-Diluted
1.56
35.03
NAV Per Share
10.31
184.42
P/E-Basic EPS
57.69
99.09
P/E-Diluted EPS
---
---
RONW(%)
16.36
23.66
Latest NAV Period
---
---
Latest NAV
---
---
How to check the allotment status of Divine Hira Jewellers Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 17 Mar 2025 & closes on 19 Mar 2025.
The Company Founder, Hirachand Gulecha, had started his journey in the silver business in 1984. In 1997, he started a proprietorship firm 'Hira Traders' and gradually entered the gold jewelry segment'. He involved in the business of Jewellery since 1984 and to expand the business further, he, along with his family, incorporated a Company, 'Divine Hira Jewellers Limited' as a Public Limited Company vide Certificate of Incorporation dated July 19, 2022 issued by the ROC, Mumbai, Maharashtra.
Company is engaged in business of manufacturing, making, buying and selling in ornaments, articles, bar, coins and jewellers of all kinds in Gold and Silver. It mainly deal in 22 Karat gold jewellery and provide extensive designs. Currently, it cater to a large number of wholesalers, showrooms and retailers who buy products in bulk quantities. The Company has acquired running business of M/s Hira Traders i.e. the HUF firm of the Promoter- Hirachand Gulecha effective in September, 2022.
Apart from these, the Company primarily sell gold jewelry including machine made, handmade & plain gold jewelry like necklace, mangalsutra, chains, malas, rings, pendants, bracelets, bangles, kada, coins and other wedding jewelleries. Their primary focus has been on purity and commitment.
The Company is planning a Public Issue upto 35,40,000 Equity Shares through Fresh Issue.
Divine Hira Jewellers Ltd IPO will close on 19 Mar 2025.
- Experienced management and well trained and trustworthy employee base.
- Wide Range of Products.
- Quality Control.
- Strong understanding of customer preference.
- Hallmarking and Unique Identification.
- Experienced Job Workers and Vendor Network.
- Design Innovation for Customers.
- Customer Satisfaction.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Hirachand Pukhraj Gukecha | 1284400 | 13.51 | 1284400 | 9.84 |
| 2 | Niraj Hirachand Gulecha | 2828150 | 29.74 | 2828150 | 21.68 |
| 3 | Khushbhu Niraj Gulecha | 975650 | 10.26 | 975650 | 7.48 |
| 4 | Hirachand P Gulecha (HUF) | 3705000 | 38.96 | 3705000 | 28.4 |
| 5 | Meena Hirachand Gulecha | 642200 | 6.75 | 642200 | 4.92 |
| 6 | Ankita Hirachand Gulecha | 24700 | 0.26 | 24700 | 0.19 |
| 7 | Harsha Rahul Kothari | 24700 | 0.26 | 24700 | 0.19 |
- Substantial portion of its revenues are dependent on few customers and the loss of, or a significant reduction in purchases by any one or more such customers could adversely affect its financial performance.
- The company dependence on few suppliers puts its at risk of interruptions in the availability of raw materials, which could adversely affect the company business, financial condition and results of operations. Further, the company has not entered into any long-term agreements with its suppliers for raw materials and accordingly may not be able to enjoy credit and other facilities provided by its existing suppliers.
- Its may be unable to obtain, renew or maintain statutory and regulatory permits, licenses and approvals required to operate its business which could result in an adverse effect on the company results of operations. Its require certain statutory and regulatory permits, licenses and approvals for the company business.
- The non-availability or high cost of quality gold bullion and coloured stones may have an adverse effect on its business, results of operations and financial condition.
- Its income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.
- The company does not register its jewellery design under the Designs Act, 2000 and the company may suffer a loss of income if its designs are duplicated by the company competitors. Moreover, its susceptible to litigation arising out of infringement of copyright of designs.
- The company generally do business with its customers on purchase order basis and does not enter into long term contracts with them. The company inability to maintain relationships with its customers could have an adverse effect on the company business, prospects, results of operations and financial condition.
- The company dependency on job worker or Karigars for the performance of its operation may adversely affect the company business.
- Any fluctuation and variation in price and supply of gold, which is a major raw material for the manufacture of its products, could adversely impact its income.
- The company faces significant competition. Any failures to compete effectively may have a material adverse effect on its business and operations.
- The company operates in limited geographies for a significant portion of its revenue and also depends on limited number of customers for the company revenue from operations. Projects in new geographies may not be as profitable as in existing geographies.
- Its may not be able to implement the company growth strategy successfully.
- Inventories and trade receivables form a substantial part of its current assets and net worth. Failures to manage the company inventory and trade receivables could have an adverse effect on its net sales, profitability, cash flow and liquidity.
- The company results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.
- The proposed objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any inability on its part to effectively utilize the Issue proceeds could adversely affect the company financials.
- If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation could be adversely affected.
- Its may not be able to maintain the company current levels of profitability due to increased costs or reduced spreads or margins
- The company depends on the accuracy and completeness of information about customers and counterparties and any misrepresentation, errors in or incompleteness of such information could cause its business to suffer.
- There are outstanding litigations involving the Company, its Promoters and Directors which, if determined adversely, may affect its business and financial condition.
- The company is dependent on job workers for manufacturing some of its inventory. Any deterioration in the quality of products procured from the company suppliers, may adversely impact its business operations.
- The Company proposes to utilize part of the Net Proceeds for repayment or pre-payment, in full or in part, of all or certain secured borrowings availed by its Company and accordingly, the utilization of that portion of the Net Proceeds will not result in creation of any tangible assets.
- Failures to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow and liquidity.
- Any adverse change in regulations governing its products, may adversely impact the company business prospects and results of operations.
- The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
- The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company business. Further, if its unable to adapt to technological changes and successfully implement new technologies or if the company faces failures of the company information technology systems, its may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.
- The company may be unable to grow its business in additional geographic regions or international markets, which may adversely affect its business prospects and results of operations.
- Demand for its products is subject to rapid and unpredictable changes in fashion trends and consumer preferences, and the company inability to anticipate and address such changes may adversely affect its business prospects, results of operations and financial condition.
- If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.
- The average cost of acquisition of Equity Shares held by its Promoters is lower than the Issue Price.
- Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
- Its future fund requirements, in the form of further Issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- Its success largely depends upon the knowledge and experience of the company Promoters, Directors and its Key Managerial Personnel. Loss of any of the company Directors and key managerial personnel or its ability to attract and retain them could adversely affect its business, operations and financial condition.
- Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.
- Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.
- Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
- The requirements of being a listed company may strain its resources.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.
- There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.
- There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
- The price of the Equity Shares may be highly volatile after the Issue.
- Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in the Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
- You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
- There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
- The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.
- Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.
- Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
The Issue type of Divine Hira Jewellers Ltd is Fixed Price - SME.
The minimum application for shares of Divine Hira Jewellers Ltd is 1600.
The total shares issue of Divine Hira Jewellers Ltd is 3537600.
Public issue of 35,37,600 equity shares of face value Rs. 10 each ("Equity Shares") of the company for cash at a price of Rs. 90/- per equity share (including a securities premium of Rs. 80/- per equity share) (the "Issue Price"), aggregating to Rs. 31.84 crores ("Issue") of the issue, 1,77,600 equity shares aggregating to Rs. 1.60 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 33,60,000 equity shares of face value of Rs. 10 each at an issue price of Rs. 90/- per equity share aggregating to Rs. 30.24 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 27.11% and 25.75%, respectively of the post issue paid up equity share capital of the company.
The face value of the equity share is Rs. 10/- and the issue price is 9 times of the face value.
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