Davin Sons Retail Limited is set to launch its initial public offering (IPO) from January 2 to January 6, 2025, aiming to raise approximately ₹8.78 crores. The IPO is priced at ₹55 per equity share, with a face value of ₹10. This SME IPO will be listed on the BSE SME platform, providing an opportunity for investors to engage with a company focused on expanding its operations and enhancing its market presence. The proceeds from the IPO are intended for capital expenditures, including warehouse purchases and working capital requirements.
₹5
₹55
₹44.00
Expert Opinions
Market sentiment for the Davin Sons IPO is cautiously optimistic, reflecting growing interest in the retail sector, particularly among SMEs. Company strengths include a significant revenue increase from ₹3.91 crore in FY23 to ₹13.39 crore in FY24, demonstrating robust growth potential and effective business strategies.
However, risks and challenges involve competition from larger retail players and potential market volatility that could impact sales. The valuation analysis sets the IPO price at ₹55 per share, with a market lot of 2,000 shares, aiming to raise approximately ₹8.78 crores to support expansion plans. From a long-term investment perspective, Davin Sons is well-positioned to capitalize on the expanding retail market in India.
Investor Considerations
Company performance and fundamentals demonstrate a significant revenue growth trajectory, with revenues increasing from ₹3.91 crore in FY23 to ₹13.39 crore in FY24, indicating effective business strategies and market demand. The sector outlook is positive, as the Indian textile and apparel industry is projected to grow at a CAGR of 10%, potentially benefiting Davin Sons in expanding its market share.
The IPO valuation, The company reported an earnings per share (EPS) of ₹4.63 for FY24, indicating strong profitability relative to its share price, which translates to a price-to-earnings (P/E) ratio of 11.88. Growth prospects are bolstered by the company’s established client base across multiple states and ongoing distributorship arrangements. However, risk factors include competition from larger players and market volatility. A long-term investment horizon is advisable, as Davin Sons is well-positioned to capitalize on industry growth trends while managing inherent risks effectively.
| Date | GMP | Trend |
|---|---|---|
| 08 Jan 2025 10.57 | ₹5 | --- |
| 07 Jan 2025 10.41 | ₹5 | --- |
| 06 Jan 2025 16.45 | ₹5 | Down |
| 05 Jan 2025 10.04 | ₹15 | --- |
| 04 Jan 2025 11.44 | ₹15 | --- |
| 03 Jan 2025 10.59 | ₹15 | Up |
| 02 Jan 2025 10.38 | ₹00 | --- |
| 01 Jan 2025 10.58 | ₹00 | --- |
| 31 Dec 2024 10.38 | ₹00 | --- |
| 30 Dec 2024 12.24 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Davin Sons’ listing performance. While the GMP of ₹5 predicted a positive premium of 9.09% over the issue price, the stock actually listed at a significant discount of 20%. With a substantial prediction error of 26.67%, the GMP not only failed to predict the magnitude but also completely misread the direction of the listing movement, demonstrating its unreliability as a price predictor in this case.
Davin Sons IPO Current GMP is ₹5.
Davin Sons IPO Expected Returns is 9.09%.
Davin Sons IPO estimated listing price is ₹60.