Varyaa Creations Limited, a prominent player in the wholesale trading of gold, silver, precious stones, and semi-precious stones, is set to embark on a new phase of growth through its upcoming Initial Public Offering (IPO). The IPO, valued at Rs 20.10 crores, consists entirely of a fresh issue of 13.4 lakh shares, with each share priced at ₹150.
Investors keen on participating in the IPO can do so from April 22 to April 25, 2024, with the allotment process slated for Friday, April 26, 2024. Varyaa Creations IPO is scheduled to list on the BSE SME platform, with a tentative listing date set for Tuesday, April 30, 2024.
Inventure Merchant Banker Services Pvt Ltd is overseeing the book-running lead management of the IPO, ensuring a seamless offering process. Bigshare Services Pvt Ltd has been appointed as the registrar for the issue, facilitating efficient coordination, while Svcm Securities serves as the market maker for Varyaa Creations IPO.
**Purpose of the Issue**
The IPO proceeds will be deployed towards several strategic objectives aimed at propelling Varyaa Creations towards sustainable growth:
1. **Establishment of a New Showroom:** A significant portion of the funds will be allocated towards financing the establishment of a new showroom. This strategic expansion initiative will enable the company to enhance its market presence and cater to a wider customer base.
2. **Capital Expenditure for the Proposed New Showroom:** Additionally, capital expenditure costs associated with the proposed new showroom will be financed through the IPO proceeds. This includes investments in infrastructure, interior design, and technological enhancements to create a captivating retail environment.
3. **Purchase of Inventory:** Varyaa Creations plans to utilize a portion of the funds for the procurement of inventory, including gold, silver, gemstones, diamonds, lab-grown diamonds, and pearls. By bolstering its inventory, the company aims to diversify its product offerings and cater to evolving consumer preferences.
4. **General Corporate Purposes:** The remaining proceeds will be utilized for general corporate purposes, including working capital requirements, operational expenses, and any other strategic initiatives aimed at driving business growth and enhancing shareholder value.
**Financial Performance and Growth Trajectory**
Varyaa Creations has demonstrated robust financial performance, underscored by its impressive revenue growth and profitability. As of September 30, 2023, the company reported a significant increase in revenue by 112.55% and profit after tax (PAT) by 36.13% compared to the previous fiscal year ending March 31, 2022.
Key performance indicators such as Return on Equity (ROE), Return on Capital Employed (ROCE), and Profit After Tax Margin (%) reflect the company’s strong financial health and operational efficiency. With a market capitalization of Rs 71.85 Cr, Varyaa Creations is well-positioned to capitalize on emerging opportunities and drive sustainable value creation for its stakeholders.
**Conclusion**
The Varyaa Creations IPO represents a significant milestone in the company’s journey, signaling its commitment to expansion and innovation in the jewelry trading industry. With a compelling product portfolio, robust financial performance, and a clear growth strategy, Varyaa Creations is poised to unlock new avenues of growth and deliver value to its investors. As the company prepares to embark on its IPO journey, investors eagerly anticipate the opportunity to be part of its promising future.
