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Varyaa Creations Limited IPO: Details, Price, Strength and Risks

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Varyaa Creations Limited deals primarily with jewellery making and about 95% of its manufactured jewellery items are exported. Its jewellery trading segment includes precious and semi-precious stones, silver, gold and others. The company emphasises manufacturing quality products, using its innovative design and exclusivity. 

The company will launch its IPO on April 22, 2024, aiming to raise around Rs. 20.10 crores. Continue reading this blog to gain detailed insights about Varyaa Creations Limited and make informed decisions accordingly. 

Varyaa Creations Limited IPO Details

Varyaa Creations Limited IPO will open for subscription from April 22 to April 25, 2024. Here is a detailed overview of its IPO: 

IPO Opening Date

April 22, 2024

IPO Closing Date

April 25, 2024

IPO Listing Date

April 30, 2024

Issue Type

Fixed Price Issue IPO

Face Value

Rs. 10 per share

Price 

Rs. 150 per share

Minimum Lot Size

1000 Shares

Total Issue Size 

1,340,000 shares (aggregating up to Rs. 20.10 Crore)

Fresh Issue Size

1,340,000 shares (aggregating up to Rs. 20.10 Crore)

Market Maker Portion 

70,000 shares

Listed On

BSE SME

About Varyaa Creations Limited

Incorporated on July 14, 2005, Varyaa Creations Limited was earlier known by the name Kalgi India Private Limited. It holds a distinguishable position in the gems and jewellery industry. Varyaa Creations Limited is involved in wholesale business trading of precious metals, gemstones and the manufacturing of jewellery. Once the jewelries are manufactured, they are outsourced to Mumbai through workers. The main raw materials used in making jewellery products include precious stones, gold, semi-precious stones, silver and more. 

All the precious and semi-precious stones are procured from the bullion market and market dealers in Mumbai. The jewellery products are sold out through B2B and B2C platforms. The product portfolio of Varyaa Creations Limited includes rings, bracelets, earrings, necklaces, bangles, gemstones, diamonds, pearls and others. With the increased demand for diamonds, the product portfolio has expanded in recent years with the introduction of Lab Grown Diamonds. 

IPO Tentative Timeline

Here you will get to know the tentative dates for Varyaa Creations Limited IPO:

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

Additional Read: How To Invest In IPO Online

IPO Lot Size

Bidding for a minimum of 1,000 shares is allowed by investors. Here is the minimum and maximum investment that retail investors and HNI can invest through shares and amounts.

Application

Lots

Shares

Amount

Retail (Min)

1

1,000

Rs. 1,50,000

Retail (Max)

1

1,000

Rs. 1,50,000

HNI (Min)

2

2,000

Rs. 3,00,000

Company Financials

Here is a detailed overview of the financial statement of Varyaa Creations Limited:

Parameters

For the Financial Year Ending (in Rupees Million)

 

March 31, 2023

March 31, 2022

March 31, 2021

Total Assets

2,000.55

143.78

218.32

Total Liabilities 

1999.90

93.18

167.58

Total Expenses 

427.53

195.14

25.12

Total Revenue

538.03

253.13

12.05

Profit After Tax

78.93

57.98

(13.06)

EBITDA

113.04

67.83

(2.40)

Strengths

Before you start investing in an IPO, you must be aware of the strengths and risks involved. The following are the strengths of Varyaa Creations Limited:

  • Varyaa Creations Limited is a popular name in Mumbai in the jewellery market. Because of the recognizable brand and its establishment, the company has successfully built a strong clientele base in recent years and hopes to expand it shortly.
  • The jewellery designs are made according to the preferences of customers. The promoters involved hold more than two decades of experience in Mumbai in the same industry. Thus, they have a thorough knowledge of the different jewellery and their respective designs in the local market. 
  • The company believes in maintaining a strong relationship with manufacturers and suppliers. This long-term relationship enables delivery of raw materials on time along with manufacturing of best quality jewellery and providing unique services to customers. 
  • There is availability of a wide range of jewellery products ranging from pendants, bracelets, anklets, mangal sutra, nose pins, earrings and bangles for females. Male accessories such as button sets, cufflinks, and rings are also widely available, catering to the different tastes and preferences of customers. Customers can customise their jewellery  designs for all occasions and festivals. This is applicable for all genders, and ages and at attractive prices. 

Additional Read: Upcoming IPOs

Risks Involved

Besides strengths, there are also risks involved that you must know about before investing in Varyaa Creations Ltd IPO. Here are the risks:

  • The main component of Varyaa Creations Limited strategy is its ability to expand and establish business worldwide. Thus, being part of the strategic growth plan, the company plans to expand globally by setting up branches in Agra. However, the company is not assured to implement these strategies and execute plans. Thus, the inability to manage growth can disrupt the business operations, thereby affecting its overall financial conditions.
  • If the cost of raw materials increases, then it might create an effect on customers. Customers might delay their purchases, thereby affecting the business and its financial condition adversely. There is, however, no such instance in the past when the company has failed to procure gold for its business expansion. 
  • The jewellery industry is labour-intensive and its success depends on attracting, hiring and retaining qualified craftsmen and designers. In recent times, the competition among skilled professionals in India has increased significantly. This increased competition thereby creates an adverse impact on the business. High rates of attrition among designers result in the production of poor-quality products. Thus, a rise in turnover rate increases the costs of training and reduces the profit margin.

Additional Read: Difference Between NFO and IPO

Summary

By now, you must have a clear understanding of Varyaa Creations Limited IPO along with the strengths and weaknesses of the company. Remember, IPO full form stands for Initial Public Offering, which refers to the process through which a company goes public by offering shares to investors for the first time. However, before you proceed to invest in this IPO, make sure to go through the Red Herring Prospectus (RHP) of the company to acquire complete knowledge. You can also visit the official website to check out all the detailed and updated information.

For the time being, consider opening a trading and demat account to streamline your investment process if you have not done so already.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

Where are the equity shares of Varyaa Creations Limited IPO proposed to be listed?

Answer Field

The equity shares of Varyaa Creations Limited IPO are proposed to be listed on the Bombay Stock Exchange for Small and Medium Enterprises.

Who are the book-running lead managers of Varyaa Creations Limited IPO?

Answer Field

The book-running lead manager of Varyaa Creations Limited IPO is Inventure Merchant Banker Services Private Limited.

What is the issue price of Varyaa Creations Limited IPO?

Answer Field

The issue price of Varyaa Creations Limited IPO is Rs. 150 which is about 15 times the face value of equity shares.

What is the face value of equity shares of Varyaa Creations Limited IPO?

Answer Field

The face value of equity shares of Varyaa Creations Limited IPO is Rs. 10 per share.

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