Shoora Designs SME IPO To Open Today: 10 Points To Know, Bet Or Avoid?

Shoora Designs Limited, a company founded in 2021, operates in the manufacturing and trade of diamonds and jewellery. Today, August 17, the company will begin the subscription window for its initial public offering (IPO). Let's analyse the IPO's details in ten points and get professional advice on whether or not one should apply.

Shoora Designs IPO Details

1. Shoora Designs IPO Price Band: The company has fixed the price band of its IPO at Rs 48 per share at a face value of Rs 10 per share.

2. Shoora Designs IPO size: The company aims to raise Rs 2.03 Crores via IPO.

3. Shoora Designs IPO GMP: The latest GMP of Shoora Designs IPO is Rs 0 today as per the market observers.

4. Shoora Designs IPO date: The IPO will open for subscription on 17th August and the window will close on 21st August.

5. Shoora Designs IPO lot size: A retail bidder required Rs 1.44 lakh to subscribe to this Shoora Designs IPO considering the minimum lot size of 3000 shares.

6. Shoora Designs IPO allotment date: Share allotment of the issue is likely to be held on Thursday, 24 August 2023.

7. Shoora Designs IPO registrar: Kfin Technologies Ltd is the registrar of Shoora Designs IPO.

8. Shoora Designs IPO lead managers: Swaraj Shares and Securities Private Ltd has been appointed as the lead manager of Shoora Designs IPO.

9. Shoora Designs IPO listing: The SME board issue is proposed for listing on the BSE SME platform.

10. Shoora Designs IPO listing date: The Shoora Designs IPO listing date is Tuesday, 29 August 2023.

Should You Apply For Shoora Designs IPO?

Nirav Karkera, Head-Research, Fisdom, said "Shoora Designs, which was engaged in the business of Apparels and Textile business, but has now entered the diamond business in 2022 by amending the objective of the Company. The revenue and profit numbers are very low as the company seems to be in a very nascent stage. They want to sell 423,000 shares for Rs. 10 each, at a fixed price of Rs. 48 per share, to raise Rs. 2.03 crore with an intention to deploy it as working capital. With the current estimated market cap of Rs. 7 crore, we suggest to avoid this IPO as the estimated P/E is around 35.82 the IPO seems to have been aggressively priced."

"Also, the company operates in a very competitive and niche market with already established players. Swaraj Shares and Securities Pvt. Ltd. is in charge of managing this IPO and is the only lead manager. The Lead Manager has a relatively limited track record of managing public offers. In light of such context, investors may be better equipped to make an investment decision once the company starts delivering a stronger performance through an extended period. It is better to not rush to invest into the IPO itself," stated Nirav Karkera.

"Shoora Designs IPO is to be listed tomorrow 17th August though its IPO size is only 2.03 crores. This company has recently started its business and I think it's too early to raise funds. However, they have shown growth in their balance sheet. QIB quota is reserved at 50% and NII at 15% and Retail quota is 35%. I do not see any strong bank and financier baking this IPO however they are into a Business which is incentivised by the Indian government, so their Business and finances are good but it's a newborn company. One you can apply for this IPO but with limited exposure," said V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

AR Ramachandran from Tips2trades said, "Even though ROE & other return ratios are good, considering Shoora Designs is a very small company, the valuation in terms of PE ratio is very high. Investors should wait for lower levels post listing to buy at better valuations."

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.