Varyaa Creations IPO: Check all details of this SME issue opening next week

Varyaa Creations is set to launch its initial public offering on Monday, April 22. The issue will be open for bidding for four days and shall conclude on Thursday, April 25. The company will be selling its shares for Rs 150 apiece with a lot size of 1,000 equity shares in its multiples thereafter.

Varyaa Creations' issue is a fixed price issue and the company is looking to raise a total of Rs 20.10 crore via its SME primary offering, which entirely consists of 13.40 lakh equity shares. The net proceeds from the issue shall be utilized towards financing of the new showroom, capital expenditure cost for the showroom; purchase of inventory; and general corporate purposes.

Retail investors can apply for only a single lot, or 1,000 equity shares, which shall cost them Rs 1,50,000. Other investors need to apply for a minimum of two lots, or 2,000 equity shares, amounting to Rs 3,00,000.

Varyaa Creations, incorporated in July 2005, deals in wholesale trading of gold, silver, precious stones, and semi-precious stones. Its portfolio includes necklaces, earrings, tops, rings, bracelets, bangles, gemstones, diamonds, lab-grown diamonds, and pearls and it also creates custom-made jewellery based on customers' requirements.

Ahead of the IPO, the company is commanding a decent grey market premium of Rs 30-50, suggesting a listing gains of 20-33 per cent to the investors over its IPO prices. However, some websites were quoting a GMP of Rs 100 for the stock. Business Today could not verify the accuracy of the price in the unofficial market, at the time of writing this report.

The company has reserved 70,000 equity shares as market maker portion and which is SVCM Securities. The company will be offering 50 per cent of equity shares for retail investors, while other categories of investors will be allocated the remaining 50 per cent of the shares.
 

Inventure Merchant Banker Services is the book running lead manager of the Varyaa Creations IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed on the SME platform of BSE, with April 30, 2024 as the tentative date of listing.