IPO Launch Date, Evaluation, Pricing, and Allocation Particulars of Varyaa Creations

The IPO details for Varyaa Creations are confirmed: The IPO is scheduled to open on April 22 and close on April 25. Varyaa Creations, a BSE SME IPO, aims to raise ₹20.10 crores through the IPO. The price band for the Varyaa Creations IPO is set at ₹150 per share, with a market lot of 1000 shares.

Historically, Varyaa Creations is engaged in the business of wholesale trading of gold, silver, precious stones, and semi-precious stones. Apart from the above, from this financial year onwards, the company also intends to focus on manufacturing and selling jewelry. Their company manufactures its jewelry through job workers located in Mumbai.

The major raw materials used for making their products are gold, precious stones, gemstones, semi-precious stones, silver, etc. which are further provided to the job workers who manufacture the jewelry for us. The job worker manufactures their products as per the design and pattern provided by us. The design of their products is done in-house. They have not entered into any formal contract or agreement with the job worker. They get their products manufactured based on order and and when-needed basis. They procure gold, silver, gemstones, precious and semi-precious stones majorly through the bullion market and jewelry market dealers located in Mumbai. Their jewelry is widely sold through B2B and B2C platforms. They also sell customized jewelry to customers. They offer their jewelry across different price points to maximize their potential customer base. They endeavor to maintain the finishing and quality of their jewelry by ensuring controlled quality, timely delivery, and competitive prices.

Their product portfolio includes necklaces, earrings, Tops, rings, bracelets, Bangles, Gemstones, Diamonds, Lab Grown diamonds, and Pearls and they also make customized jewelry as per customer’s needs. Recognizing the growing demand for ethically sourced diamonds, they have recently expanded their portfolio to include Lab Grown Diamonds.

Varyaa Creations IPO Details

IPO Date April 22, 2024 to April 25, 2024
Listing Date [.]
Face Value ₹10 per share
Price ₹150 per share
Lot Size 1000 Shares
Total Issue Size 1,340,000 shares (aggregating up to ₹20.10 Cr)
Fresh Issue 1,340,000 shares (aggregating up to ₹20.10 Cr)
Issue Type Fixed Price Issue IPO
Listing At BSE SME
Share holding pre issue 3,450,000
Share holding post issue 4,790,000
Market Maker portion 70,000 shares

Varyaa Creations IPO Timeline (Tentative Schedule)

IPO Open Date Monday, April 22, 2024
IPO Close Date Thursday, April 25, 2024
Basis of Allotment Friday, April 26, 2024
Initiation of Refunds Monday, April 29, 2024
Credit of Shares to Demat Monday, April 29, 2024
Listing Date Tuesday, April 30, 2024
Cut-off time for UPI mandate confirmation 5 PM on April 25, 2024

Key Performance Indicator

KPI Values
ROE 85.52%
ROCE 114.57%
RoNW 85.52%
P/BV 12.61
PAT Margin (%) 19.92%

Objects of the Issue (Varyaa Creations IPO Objectives)

The Net Proceeds from the Issue are proposed to be utilized by the company for the following objects:

  1. To finance the establishment of the new showroom,
  2. Capital expenditure cost for the proposed new showroom and Purchase of Inventory for the proposed new showroom;
  3. Purchase of Inventory; and
  4. General Corporate Purposes.

Varyaa Creations IPO Review (Avoid)

The company operates in a fiercely competitive and fragmented market and is solely involved in trading activities without any manufacturing units, relying instead on third-party contracts. The minimal equity post-IPO suggests a prolonged gestation period for transition. Based on FY24 annualized super earnings, the valuation of the offering seems fully priced. Furthermore, there are concerns regarding the authenticity of the 9M-FY24 financial data, which raises suspicions about the pre-IPO period. Given these factors and the high risk coupled with low potential returns, it might be advisable to refrain from investing in this opportunity.

Varyaa Creations Limited Financial Information (Restated Standalone)

Varyaa Creations Limited’s revenue increased by 112.55% and profit after tax (PAT) rose by 36.13% between the financial year ending with March 31, 2023 and March 31, 2022.

Period Ended 30 Sep 2023 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets 1,049.17 2,000.55 143.78 218.32
Revenue 1,762.49 538.03 253.13 12.05
Profit After Tax 351.11 78.93 57.98 -13.06
Net Worth 410.56 59.45 -19.47 -77.46
Reserves and Surplus 65.56 44.45 -34.47 -92.46
Total Borrowing 44.81 283.82
Amount in ₹ Lakhs

Varyaa Creations Company Financial Report

₹ in Crores
Year Revenue Expense PAT
2021 ₹0.12 ₹0.25 ₹0.13
2022 ₹2.53 ₹1.95 ₹0.58
2023 ₹5.38 ₹4.28 ₹0.79
Dec 2023 ₹17.62 ₹12.93 ₹3.51

Company Promoters

  • Mrs. Pooja Vineet Naheta
  • Mrs. Sarika Amit Naheta