Omara Ventures IPO

Easy to miss in the prospectus

• Pre-issue equity is almost entirely paper. Of 30,10,000 shares outstanding before the issue, 10,000 were subscribed for cash at ₹10 in October 2020 and 30,00,000 were a 300:1 bonus issue on 11 December 2025 out of FY25 reserves. The company has received ₹1.00 lakh of equity money in its life, and is now asking ₹311 a share.
• On 11 March 2026, six and a half months before the issue opened, Mr Sunil Jaiswal gifted 14,79,398 shares — 49.15% of the pre-issue capital — to Managing Director Samarth Jaiswal for no consideration. Mr Jaiswal had subscribed half the original ₹1.00 lakh and taken 14,99,400 of the bonus shares; he is left with 25,000, and is not classified as a promoter.
• The bonus makes the per-share history unusable unless it is adjusted. The restated accounts put net asset value per share at ₹426.87 for FY24 and ₹3,158.50 for FY25 on actual share counts; the Basis for Issue Price restates the same years at ₹1.42 and ₹10.49 after applying the bonus retrospectively. Only the FY26 figure of ₹41.61 is the same in both.
• The prospectus disagrees with itself on its own headline ratio. The KPI table and the Return on Net Worth disclosure both give FY26 RoNW as 74.78%; the listed-peer comparison table on the facing page prints 74.89% for the same company and the same year. This record carries 74.78%.
• The disclosed EBITDA of ₹14.43 Cr adds back ₹1.31 Cr of interest, but the restated profit and loss account shows finance costs of ₹1.49 Cr for the same year. Adding back what the P&L actually reports would give ₹14.61 Cr and a margin of 31.84% rather than 31.45%.
• Two very different P/E figures are both defensible here. The prospectus reports basic and diluted EPS of ₹31.11 for FY26 on the pre-issue share count, which puts ₹311 at almost exactly 10× earnings; spread the same ₹9.37 Cr over the 43,60,000 post-issue shares and EPS is ₹21.48 and the multiple 14.48×. The dilution is 31%, because the issue is 30.96% of post-issue capital.
• No grey market premium was ever quoted. IPO Watch's tracker ran from 23 September through to listing day with every cell blank, so there was no sentiment signal at all going into a debut that came in at ₹319, a 2.57% premium.
• ₹2.35 Cr of the ₹22.43 Cr of borrowings are unsecured loans from directors — ₹2.15 Cr from Mr Sunil Jaiswal and ₹0.19 Cr from Mr Samarth Jaiswal. The ₹18.00 Cr repayment object is drawn to cover borrowings from banks and financial institutions, so the director loans are not among the debts the public money retires.
• The cash credit limit was raised from ₹15.00 Cr to ₹17.00 Cr by a sanction letter dated 26 July 2026, after the accounts close. The prospectus states the incremental ₹2.00 Cr is not proposed to be repaid from the net proceeds, so headroom is being added at the same time as debt is being retired.
• The ₹2.00 Cr boutique object is not a second shop. It funds renovation of the existing premises plus the first floor above them, made available under an undertaking-cum-commitment agreement with the landlords dated 25 June 2026 — so after the raise the company still trades from one address.
• Only ₹32.00 Cr of the ₹41.99 Cr gross proceeds is allocated across the four named objects; general corporate purposes and issue expenses carry the balance and were both left as placeholders in the red herring prospectus, to be fixed only on determination of the issue price.
• The stock has gone nowhere since listing. It opened at ₹319 on 8 October and closed 12 October at ₹316.90 — below its debut print and 1.9% above the issue price, with the designated market maker Rikhav Securities holding 68,000 shares and trading confined to the trade-for-trade segment for the first ten days.