N R Gold IPO Details
RHP/DRHPIssue Date
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Investment/lot
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Price Range
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Lot Size
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IPO Size
N/A
Schedule of N R Gold IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About N R Gold IPO
The IPO of N R Gold Ltd comprises a fresh issue of up to 31,00,000 equity shares. There’s no offer for sale in this IPO, which is a fixed price issue. The lot size of the IPO is TBA and the price band is TBA.
The opening date of the IPO is TBA and the closing date is TBA. The listing of shares will take place on TBA. The allotment date of the IPO is TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA.
Objectives of N R Gold IPO
- Investment in N R Gold & Jewels LLP
- General corporate purposes
N R Gold IPO Valuation
Industry Outlook
India’s gems and jewellery market size was at US$ 78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and the fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC. The future outlook for gold jewellery seems to be promising amidst some challenges. Increase in duty drawback for gold announced in Oct 2023, New year and the Valentine month are expected to result in increased exports.
In the coming years, growth in the gems and jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Also, the relaxation of restrictions on gold import is likely to provide a fillip to the industry.
Company Information
N R Gold Ltd is a wholesale manufacturer and distributor of traditional and modern jewellery, primarily serving well-established brands such as Kalyan Jewellers India Limited and Joyalukkas India Limited. It operates under a robust B2B business model, specialising in South Indian traditional jewellery, while also offering a diverse range of Indo-western and modern jewellery design to meet various customer demands.
Strengths of N R Gold IPO
Strong B2B Network
N R Gold Ltd has established a strong B2B network by consistently supplying jewellery to prestigious Indian brands. These collaborations enhance its market credibility and brand visibility, as associations with such esteemed clients reflects the trust and reliability it has built over time. Additionally, its relationships with boutique stores and wholesalers further solidify its market presence.
Design, Innovation and Product Range
The extensive experience of the promoters in the gold industry provides valuable insights into customer preferences and market trends. This understanding enables the company to design products that align with the specific needs and desires of its customers. By offering a diverse range of traditional and modern jewellery, including Indo-western designs, it successfully caters to both classic and contemporary markets, appealing to a wide and varied customer base.
Risks of N R Gold IPO
- Concentrated Customer Base :
N R Gold Ltd, along with its subsidiary, has a concentrated customer base, making it significantly dependent on few key customers for its revenue. The loss of any one or more of these customers could have a significant impact on its business operations and profitability.
- Dependence on Few Suppliers :
The company’s dependence on few suppliers puts it at risk of interruptions in the availability of raw materials, which could adversely affect its business, financial condition and results of operations. Further, it has not entered into any long-term agreements with its suppliers for raw materials and accordingly may not be able to enjoy credit and other facilities provided by its existing suppliers.
- Fluctuation in Price and Supply of Raw Materials :
Any fluctuation in price and supply of raw materials, particularly gold, which is its primary raw material for the manufacture of its products, could adversely impact its income. Also, the company’s income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.
N R Gold IPO Financials
Peer Comparison
| Company Name | Total Income (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|---|
N R Gold Ltd | 450.64 | 7.24 | 30.78 | 23.52 |
Radhika Jeweltech Ltd | 545.63 | 4.20 | 18.70 | 22.45 |
Ashapuri Gold Ornament Ltd | 166.85 | 0.30 | 8.26 | 3.60 |
S M Gold Ltd | 63.21 | 1.19 | 27 | 22.04 |
IPO Registrar and Book Running Lead Managers
- IPO Registrar: Skyline Financial Services Pvt Ltd
- Book Running Lead Managers: Interactive Financial Services Ltd and Wealth Mine Networks Pvt Ltd
Business Model
N R Gold Ltd offers a diverse range of jewellery, tailored to meet the preferences of various customer segments. These include:
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Traditional South Indian Jewellery: The company’s core strength includes mangalsutras, harams, and temple jewellery which features traditional motifs and intricate craftsmanship.
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Modern and Indo-Western Jewellery: It adapts to the evolving trends in the jewellery industry by offering modern designs that cater to younger, style-conscious buyers. This includes trendy chokers, lightweight necklaces, and contemporary bracelets.
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Customised Orders: N R Gold Ltd provides custom jewellery solutions for clients looking for unique and exclusive pieces with a combination of precious and semi-precious stones.
Company Growth Trajectory
The total income of N R Gold Ltd grew from ₹25.7858 crores in FY 22 to ₹450.6404 crores in FY 24. Its operating EBITDA margin grew from 1% in FY 22 to 2.91% in FY 24. A strong B2B network coupled with design, innovation and product range has contributed to the company's growth.
Market Position
To maintain its production, N R Gold Ltd collaborates with a network of over 100 job workers who manufacture its products on a job-work basis. All of its jewellery products are meticulously manufactured in Mumbai, where its team oversees the production process. Once the manufacturing is complete, the finished goods are transferred to its operational shop in 1st Floor, Manu Square, 27-14-28, Rajagopalachari St, Governor Peta, Vijayawada, Andhra Pradesh, India. This ensures that the same level of quality and craftsmanship is upheld across both the wholesale and operational channels. enabling it to offer customers in Andhra Pradesh access to its exclusive range of traditional and modern jewellery directly from its operational outlet.
N R Gold Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 450.64 | 453.77 | 25.78 |
Profit Before Tax (in ₹ crores) | 8.05 | 5.81 | 1.71 |
Profit After Tax (in ₹ crores) | 5.19 | 3.76 | 1.52 |
EBITDA (in ₹ crores) | 13.12 | 11.61 | 0.25 |
EPS in ₹ | 7.24 | 5.24 | 2.12 |
N R Gold Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 8.05 | 5.81 | 1.71 |
Net Cash Flow from Operating Activities (in ₹ crores) | -26.74 | -52.86 | -0.47 |
Net Cash Flow from Investing Activities (in ₹ crores) | 0.05 | 6.47 | 0.74 |
Net Cash Flow from Financing Activities (in ₹ crores) | 28.03 | 46.48 | -0.25 |
Cash & Cash Equivalents As At End of the Period (in ₹ crores) | 1.46 | 0.12 | 0.02 |
How to Apply for the N R Gold IPO?
Visit the Registrar’s Website
- Visit the official website of Skyline Financial Services Pvt Ltd
- Click on ‘Public Issue’ from ‘Investors’ dropdown
- Choose ‘Company Name’
- Enter DPID/Client ID or Application Number or PAN Number
- Click on ‘Search’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for the N R Gold IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
N R Gold IPO FAQs
Where can I read more about N R Gold business?
You can read more about N R Gold and its IPO from the company’s red herring prospectus (RHP) here.
What is the N R Gold IPO?
The N R Gold Ltd IPO comprises a fresh issue of up to 31,00,000 equity shares. There’s no offer for sale in this IPO.
When will the IPO of N R Gold IPO go live?
The exact dates of the IPO are not known.
