Davin Sons Retail IPO opens on January 2, 2025, with an offering of 15.96 lakh shares at a fixed price of ₹55 per share, totaling ₹8.78 Crore in fresh issues. The subscription period will close on January 6, 2025, with the allotment scheduled for January 7, 2025. The shares will be listed on BSE SME, and the tentative listing date is set for January 9, 2025.

Overview of Davin Sons Retail and Its Business Segments

Davin Sons Retail is categorized into two key segments:

1. Garment Manufacturing: The company is engaged in the production and design of readymade garments, offering a diverse range of high-quality jeans, denim fabrics, denim jackets, and t-shirts.
2. FMCG Distribution: The company also operates within the Fast-Moving Consumer Goods (FMCG) industry, which is known for its long-term sustainability and growth potential.

Subscription and Investment Details

The Davin Sons Retail IPO offers shares at ₹55 each, and the market capitalization at the IPO price will be ₹28.94 Crore. The lot size is set at 2,000 shares, with a minimum investment of ₹1,10,000 for retail investors. High-Net-Worth Individuals (HNIs) must invest a minimum of 2 lots (4,000 shares), totaling ₹2,20,000. The Grey Market Premium (GMP) is currently ₹8, indicating potential listing gains of 14.54%.

Subscription Status and Allotment

As of January 2, 2025, the Davin Sons Retail IPO was subscribed 2.59 times on its first day of subscription. The IPO allotment status will be available on January 7, 2025. Investors can easily check the status by visiting the registrar’s website.

Objectives of Davin Sons Retail IPO

The net proceeds from the IPO will be utilized for several strategic purposes:

1. ₹136.00 Lakh to finance capital expenditure for the purchase of a warehouse.
2. ₹420.00 Lakh for working capital requirements.
3. ₹189.80 Lakh for general corporate purposes.

Financial Performance and Valuation

Davin Sons Retail has shown significant growth in its financial performance. For the fiscal year 2024, the company's revenues reached ₹634.10 Lakh, with an EBITDA of ₹153.40 Lakh and a Profit After Tax (PAT) of ₹73.59 Lakh. The company’s pre-issue EPS stands at ₹4.63, and the post-issue EPS is ₹3.12. The company’s P/E ratio is 11.88x pre-issue and 17.64x post-issue. These metrics suggest that the IPO is fairly priced in comparison to its peers.

Davin Sons Retail IPO Review

Considering the strong financial performance and the potential growth of the garment manufacturing and FMCG distribution sectors, the Davin Sons Retail IPO offers investors an opportunity in a stable business. However, the Grey Market Premium indicates modest potential listing gains of 14.54%, suggesting that the IPO may not deliver exceptional gains in the short term. Given these factors, we recommend investors to avoid this IPO for listing gains but could consider for long-term investment in case of strong future growth.

The Upcoming IPOs in this week and coming weeks are  Fabtech Technologies, Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, B R Goyal.

The Current active IPO is  Indo Farm, Technichem Organics, Leo Dry Fruits, Davin Sons, and Parmeshwar Metal.

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