Bhatia Communications & Retail Ltd

Bhatia Communications

About the Company:

Bhatia Communications & Retail Ltd engaged into retail and wholesale distribution business of mobile handsets, tablets, data-cards, mobile accessories, mobile related products etc.

They sell smart mobile handsets of all the brands including Apple I-Phone, Samsung, OPPO, GIONEE, VIVO etc, mobile related products, tablets, data cards, accessories under one roof through company owned 72 retail outlets chain located all over the South Gujarat region including Surat, Vapi, Valsad, Navsari, Vyara etc.

They also sell cellular mobile devices and accessories of all brand through their 24 franchisee retail chain dealers located in the South Gujarat region.

Company’s existing business was started back in 2008 with a single shop by taking over the running business of partnership firm M/s. Bhatia Watch & Gift and at present under the Brand name of Bhatia Communication/Bhatia Mobile – “The Mobile One stop Shop” the same has expanded its space to more than 96 shops in South Gujarat
including franchisees.

They also provide after sale services related to mobile handsets and tablets in their own retail and franchisee outlets.

Company Sells the following range of Products:

Management Team:

  1. Mr.Sanjeev Bhatia (Designation: Managing Director)
  2. Mr.Nikhil Bhatia (Designation: Whole Time Director)
  3. Mr.Harbanslal Bhatia (Designation: Whole Time Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Sanjeev Bhatia 23,80,000 0.021
Harbanslal Bhatia 23,80,000 0.021
Nikhil Bhatia 36,427 30.45


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake (%)
Sanjeev Bhatia 49.00 34.04
Harbanslal Bhatia 49.00 38.03
Nikhil Bhatia 0.75 0.58
Promoter Group Entities: 1.25 0.98
Total 100% 73.63%


Objectives of the Issue:

Offer for Sale (Around Rs. 3.75 cr)

  • Company will not receive any proceeds from the Offer for Sale.

Fresh issue (Around Rs.21 cr )

  • Long term Working capital requirement
  • General Corporate Purpose,
  • Meeting Public Issue Expenses.


Fund Utilization:

Particulars Amount (Rs. in Crores)
Long term Working capital Requirements 15.50
General Corporate Expenses 5.0
Public Issue Expenses 0.50
Net Proceeds 21.00 cr


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 30th Nov 17
Revenue  74.29  104.11 110.57   96.08  133.49  85.23
Net Profit  0.20  0.35  0.34 0.31  0.48  1.31


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Bhatia Communications &
Retail Ltd 
10 9.27 17.36 13.46 68.90
Vmart Limited 10 21.88 74.99 14.62 149.62
V2 Retail Limited 10 5.21 89.62 3.69 122.03


IPO Details:

Details Info
Issue Opens on 8th February 2018
Issue Closes on:. 12th February 2018
Issue Price Rs.150
Face Value Rs.10
Minimum Lot 1000
Minimum Investment Rs.1,50,000
Issue Constitutes 26.37%
Issue Size Rs.24.75 cr
Market Cap Rs.94.13 cr
Listing at BSE SME
Equity Shares Offered (Fresh) 14,00,000
Equity Shares Offered (OFS) 2,50,,000
Total Equity Shares Offered (Fresh + OFS) 16,50,000
Equity Shares Prior to the Issue 48,57,600
Equity Shares after the Issue 62,75,600


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
9.27 16.18 13.46% 68.90


Grey Market Premium :

Date IPO Price Band Grey Market premium
13/02/18 Bhatia Communications & Retail Ltd 150 05 – 07


Subscription Details:

(Subscription-Category-Wise (no. of times) Till time : 05:45 PM) Shares Offered Day-1 Day-2 Day-3
HNI  7,83,000  0.37  1.48 1.98
Retail  7,83,000  0.01  0.06 0.73
Others   84,000  0.047  0.047  0.047
TOTAL  16,50,000  0.41  0.73  1.29


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Neutral NA NA


Company Contact Info:
Bhatia Communications & Retail (India) Ltd
132, Dr. Ambedkar Shopping Centre,
Ring Road, Surat, Guajrat -395 002.
Tel: 0261-2349892


IPO Registrar Info:
Address: Unit no. 9, Shiv Shakti Ind. Est.
J.R. BorichaMarg, Lower Parel, (E),
Mumbai – 400011
Tel No: +91-022-23016761/8261
Email Id:


Lead Manager to the Issue:
18 Deshapriya Park Road,
Kolkata – 700 026, West Bengal, India
Tel: +91 – 33 – 3001 5555
Investor Email: