Business description – Palm Jewels is engaged in the wholesale business of gold jewellery. The company’s registered office and business of operation is based in Ahmedabad. The company essentially sells gold based chains, bracelets and necklaces. It outsources the manufacturing of jewellery through job workers based in Ahmedabad and Mumbai. The major raw material used for making our products is gold & silver. The company procures gold & silver through the bullion market and partially from the local markets in Ahmedabad. Gold bars and other necessary material are provided to the job workers who are based either in Ahmedabad and Mumbai. However, no formal agreement has been executed with either of these job workers. The finished jewellery is sold by its marketing and sales team directly to other jewellery stores.
Promoters of Palm Jewels – Mr Rohit D Shah & Mrs Chetna R Shah
| Palm Jewels IPO details | |
| Subscription Dates | 25 May – 4 June 2018 |
| IPO Price band | INR30 per share |
| Fresh issue | 2,968,000 shares (INR8.90 crore) |
| Offer for sale | Nil |
| Total IPO size | 2,968,000 shares (INR8.90 crore) |
| Minimum bid (lot size) | 4,000 shares |
| Face Value | INR10 per share |
| Retail Allocation | 50% |
| Listing On | BSE SME platform |
Use of funds
- Working capital requirements – INR8.65 crore
- Issue expenses – INR0.25 crore
| Palm Jewels’ financial performance (in INR lakh) | ||||||
| FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | 11M FY2018 | |
| Total revenue | 118.9 | 41.6 | 97.9 | 157.5 | 552.4 | 1,975.5 |
| Total expenses | 118.7 | 41.5 | 98.5 | 156.8 | 549.8 | 1,916.2 |
| Profit after tax | 0.1 | 0.2 | -0.4 | 0.5 | 1.5 | 44.4 |
Palm Jewels’ Contact Details
Palm Jewels Limited
G.F-37, Super Mall
Nr. Lal Bunglow, C. G. Road
Ahmedabad – 380001
Phone: +91 79 4005 2056
Email:Â [email protected]
Website: www.palmjewels.com
Palm Jewels IPO Subscription Details
| Day | Subscription (no. of times) |
| Day 1 |
0.02 |
| Day 2 |
0.13 |
| Day 3 |
0.13 |
| Day 4 |
0.18 |
| Day 5 |
0.41 |
| Day 6 |
0.68 |
| Day 7 |
1.09 |
Palm Jewels Valuation (for FY2017)
Earnings Per Share (EPS): INR0.49
Price/Earnings (P/E) ratio: 61.22
Return on Net Worth (RONW): 4.54%
Net Asset Value (NAV): INR10.78 per share
Registrar of Palm Jewels IPO
Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone:Â +91 40 6716 2222Â
Fax:Â +91 40 2343 1551Â
Email:Â [email protected]
Website:Â www.karvycomputershare.com
Palm Jewels IPO Allotment Status
Palm Jewels IPO allotment status is now available on Karvy Computershare’s website. Click on this link to get allotment status.
Listing performance of Palm Jewels
IPO Opening Date: 25 May 2018
IPO Closing Date: 4 June 2018
Listing Date: 12 June 2018
Listing Price on BSE SME: INR37.5 per share (up 25% from IPO price)
Closing Price on BSE SME: INR35.85 per share (up 19.5% from IPO price)
Bogus company, just doing trading and demanding such high price. AVOID!!
1.Their Director is a 20 year old kid who is currently pursuing a degree in Engineering. He is also responsible for the administration of the company
2. The CFO is 25 years old. B.Com grad. Experience of 5 years from Parasmani Jewellers. A Facebook profile with the same name lists him as a Cashier in Parasmani Jewellers. (Can’t be verified though)
3. They have 8 employees in total apart from the management. 1 CFO, 1 Company Secretary who was hired on May 15, 2018. 1 driver. 2 Accountants. And 3 Sales people
3. They do only wholesale gold selling. Buying gold from the bullion market, giving it out to job workers( Not employees ) to make new designs and then sell it to other jewellery stores. Very very thin margins
4. Their biggest client is Jain ornaments with 3.6 Cr. Business. Jain ornaments i also owned by the promoters of Palm Jewel
5. They have very little fixed assets ~2 Lakhs and operating out of a leased space
6. Shareholders fund suddenly increased from Rs. 35 Lakhs (FY 2017) to 4.12 Crores (FY 2018)
7. The company secured a loan of Rs. 90 Lakh from Yes bank on October 2017 at an interest of 8.8% p.a. However the company’s financial cost stood at only Rs. 1.37 Lakhs as of Feb 2018.