Schedule of Utssav Cz Gold Jewels
| Issue open date | 31 Jul 2024 |
| Issue close date | 02 Aug 2024 |
| UPI mandate deadline | 02 Aug 2024 (5 PM) |
| Allotment finalization | 05 Aug 2024 |
| Refund initiation | 06 Aug 2024 |
| Share credit | 06 Aug 2024 |
| Listing date | 07 Aug 2024 |
| Mandate end date | 17 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 04 Sep 2024 |
| Lock-in end date for anchor investors (remaining) | 04 Nov 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Utssav Cz Gold Jewels
Established in 2007, Utssav Cz Gold Jewels is in the business of designing, manufacturing, wholesaling, and exporting 18Karat 20Karat, and 22Karat CZ Gold jewellery. The Company specializes in the lightweight production of cubic zirconia (CZ) gold and rose gold casting jewellery. It manufactures and offers a wide collection of products such as Rings, Earrings, Pendants, Bracelets Necklaces, Watches and Broaches, etc. The company’s manufacturing facility spanning over 8,275 square feet in Andheri East, Mumbai, is equipped to produce various jewellery with precision and efficiency with an installed manufacturing capacity of 1,500 kg per annum.
The company has a long-standing relationship with jewellery retailers such as D.P. Abhushan Limited, Kalamandir Jewellers Limited, and numerous other esteemed clients. The company’s customers are spread across 17 states and 2 union territories in India and 2 countries abroad.
Financials of Utssav Cz Gold Jewels
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹69.50 crores |
| Fresh issue | ₹69.50 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Working capital requirements | 60.50 (87.1%) |
| General corporate purposes | 9 (12.9%) |
*All figures except EPS are in ₹ crores
Strengths
- Long-standing retailer relationships: The company, engaged in B2B jewellery sales, has built long-term relationships with prominent domestic retailers like D.P. Abhushan Limited and Kalamandir Jewellers Limited, averaging 7-8 years. These established partnerships have driven past growth and are expected to support future expansion.
- Strong financial performance: Driven by higher demand for gold jewellery and increased sales of 18Karat gold, the company achieved a 40.75% CAGR in revenue from FY21 to FY23. EBITDA and net profit margins improved from 3.01% and 1.39% in FY21 to 5.83% and 3.12% in FY23, respectively.
Risks
- Reliance on top clients: The company derives nearly 56% of its revenue from its top 10 customers. Any reduction in business from these top 10 customers or any other major clients could have negative implications for both revenue and profitability.
- Higher working capital requirements: The Company requires a significant amount of working capital for continued growth. Its inability to meet working capital requirements, on commercially acceptable terms, may adversely impact the business, financial condition, and results of operations.
- Negative cash flows from operating activities: The company has had negative cash flows from operating activities in the last 3 years. Negative cash flows over extended periods, or significant negative cash flows in the short term, could affect the company’s ability to operate the business and implement its growth plans.