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Omara Ventures IPO Review by Dilip Davda (BSE SME)

Dilip DavdaBy Dilip Davda
September 30, 2026
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  • The company is engaged in the business of retail jewellery business.
  • It is selling its products under the “OMARA” brand.
  • Despite static top lines for FY24 and FY25, it marked improved profits for FY25.
  • Bumper top and bottom lines in a pre-IPO year (FY26), appears a window dressing to fetch fancy valuations for the IPO.
  • There is no harm in skipping this pricey and dicey offer.

Issue Details / Capital History

The company is coming out with its maiden book building route combo IPO of 6208800 equity shares of Rs. 10 each to mobilize Rs. 121.69 cr. at the upper cap. The company has announced a price band of Rs. 186 – Rs. 196 per share. The IPO consists of 5407200 fresh equity shares (worth Rs. 105.98 cr. at the upper cap), and an Offer for Sale (OFS) of 801600 equity shares (worth Rs. 15.71 cr. at the upper cap). The minimum application to be made is for 1200 shares and in multiples of 600 shares thereon, thereafter. The issue opens for subscription on September 30, 2026 and will close on or before October 06, 2026. The shares will be listed on BSE SME. The IPO constitute 26.45% of the post-IPO paid-up capital of the company. From the net proceeds of the issue, the company will utilize Rs. 38.00 cr. for working capital, Rs. 6.27 cr. for funding capex on additional plant and machinery, Rs. 41.00 cr. for repayment/prepayment of certain borrowings, and the rest for general corporate purposes.

The IPO is solely lead managed by Hem Securities Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. HEM Group’s Hem Finlease Pvt. Ltd., is a market maker, and also a syndicate member.

After issuing/converting initial equity capital at par value, the company issued further equity shares in the price range of Rs. 90.00 – Rs. 190.00 per share between March 2024, and December 2025. It has also issued bonus shares in the ratio of 1 for 1 in September 2024. The average cost of the acquisition of shares by the promoters is Rs. 4.88, and Rs. 5.00 per share.

Post-IPO, company’s current paid-up equity capital of Rs. 18.06 cr. (18065000 equity shares) will stand enhanced to Rs. 23.47 cr. (23472200 equity shares). Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 460.06 cr.

Financial Performance

On the financial performance front, for the last three fiscals, the company has posted total income/ net profit, of Rs. 23.19 cr. / Rs. 0.31 cr. (FY24), Rs. 23.52 cr. / Rs. 2.73 cr. (FY25), Rs.  45.87 cr. / Rs. 9.37 cr. (FY26). The company marked static top line with improved profits for FY25, but bumper top and bottom lines in a pre-IPO year (FY26), appears as a window dressing to fetch fancy valuations.

For the last three fiscals, the company has reported an average EPS of Rs. 18.75 and an average RoNW of 78.37%. The issue is priced at a P/BV of 7.47 based on its NAV of Rs. 41.61 per share as of March 31, 2026, but its post-IPO NAV data is missing from the offer documents.

If we attribute FY26 earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 14.48, and based on FY25 earnings, the P/E stands at 49.60. The issue appears exorbitantly priced based on its recent average earnings

The company has posted PAT Margins of 1.34% (FY24), 11.61% (FY25), 20.42% (FY26) and RoCE margins of 71.34%, 82.36%, 85.38%, respectively for referred periods.

Dividend Policy

The company has not paid any dividends since its incorporation. It will adopt a prudent dividend policy, based on its financial performance and future prospects.

Comparison with Listed Peers

As per the offer document, the company has shown BlueStone Jewellery, PNGS Reva, PN Gadgil Jewellers, Advit Jewels, as its listed peers. They are currently trading at a P/E of 218.0, 19.3, 19.2, and 36.3 (as of September 29, 2026). However, they are not truly comparable on an apple-to-apple basis. This comparison is an eye-wash only. Outperforming margins compared to its listed peers is a big surprise and non-convincing.

About Company

Omara Ventures India Ltd. (OVIL) is a retail jewellery business engaged in selling a range of diamond jewellery made using natural diamonds and precious and semi-precious gemstones, set in precious metals such as gold, Platinum and silver. Its jewellery is marketed and sold under its brand name “Omara” and is primarily offered through its retail boutique.

Its product portfolio comprises a range of diamond jewellery products, including necklaces, earrings, rings, bracelets and other jewellery products, catering to varied customer preferences, age groups and occasions. OVIL’s offerings include wedding jewellery, special occasion jewellery, festive jewellery and contemporary daily-wear jewellery, designed across various price points to suit different customer requirements. Through its product offerings, the company aims to combine traditional elegance with modern aesthetics, offering jewellery that reflects craftsmanship, exclusivity and contemporary design preferences. Its business model is centred around in-house product conceptualization, design development, customer preference analysis, product curation and retail merchandising. It focuses on developing designs that appeal to customers seeking luxury, personalization and exclusivity, particularly for weddings, festive occasions, gifting and daily wear.

It has entered into a product development and supply arrangement with its product development and supply partner for the development and supply of jewellery in accordance with its approved designs, specifications and quality standards. This arrangement enables it to maintain consistency in craftsmanship, design execution, finishing and product quality. The company also provides customization services, allowing customers to personalize jewellery designs based on their individual requirements, preferences and occasions. This enables it to offer differentiated, design-led and customer-centric jewellery solutions while maintaining quality, craftsmanship and design integrity.

OVIL’s product philosophy is centred on curated and design-led creations, where each collection comprises select designs developed in limited quantities, thereby preserving exclusivity, design distinctiveness and the premium positioning of the Omara brand. As part of its brand recognition and identity, the “Omara” logo/brand insignia is embossed or marked on each jewellery sold by it. This enhances brand visibility, reinforces product authenticity and supports customer recall of its jewellery offerings.

Its jewellery products are supported by applicable quality certifications, including BIS hallmarking for precious metals and diamond grading/certification from recognised gemological laboratories such as the Gemological Institute of America (GIA), wherever applicable, providing assurance of purity and quality to customers. It primarily caters to business-to-consumer (B2C) customers through its retail boutique and endeavor to offer a curated range of designer diamond jewellery combining craftsmanship, creativity, elegance and a contemporary retail experience. As of June 30, 2026, it had 17 employees on its payroll.

Merchant Banker's Track Record

This is the 7th mandate from Wealth Mine Networks, in the last two fiscals (including the ongoing one). Out of the last 6 listings, 1 opened at par, and the rest listed below the offer price. The merchant banker has a very poor track record.

Conclusion

OVIL is engaged in the business of retail jewellery business. It is selling its products under the “OMARA” brand. Despite static top lines for FY24 and FY25, it marked improved profits for FY25. Bumper top and bottom lines in a pre-IPO year (FY26), appears a window dressing to fetch fancy valuations for the IPO. Tiny paid-up equity capital post-IPO indicates longer gestation period for migration. Merchant Banker’s track record is very poor. There is no harm in skipping this pricey and dicey offer.
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