• The company is engaged in the marketing and trading of branded jewellery.
• It operates on third party contract model of business, and has no own manufacturing unit.
• The company has posted erratic financial performances for the reported periods.
• Based on its recent financial data, the issue appears exorbitantly priced.
• There is no harm in skipping this pricey and dicey bet.
ABOUT COMPANY:
Viram Suvarn Ltd. (VSL) kept changing its name from Veeram TV Network Pvt. Ltd. to Veeram Spiritual Energies Pvt. Ltd., to Veeram Ornaments Pvt. Ltd., later changing it to Veeram Ornaments Ltd., then to Veeram Securities Ltd., and then to its existing name.
The company is an integrated wholesaler specializing in branded jewellery and ornaments, as well as a trader in silver. In addition, it serves as a distributor of ready-made gold and silver jewellery and ornaments. Its product portfolio includes a diverse range of gold and silver jewellery, both with and without studded precious and semi-precious stones, catering to various market demands.
Its jewellery and ornaments are thoughtfully designed to cater to the growing demand for traditional, modern, and Indo-Western styles across India. Understanding the diverse regional tastes and preferences within the country, it has developed a broad range of Jewellery that appeals to all segments of the market. Whether for formal, casual, or festive occasions, its collections are created to meet a wide array of consumer needs.
Currently, it operates as wholesale trader of gold and jewellery products. Also, in order to ensure readily available customized products along with a low waiting time for customers, it needs to stock products to meet varied need of customers. Further, it is required to provide sufficient credit period to customers resulting in high receivables. It operates on third party contract manufacturing model. As of March 31, 2025, it had just 5 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 37820426 equity shares of Rs. 2 each at a fixed price of Rs. 8 per share to mobilize Rs. 30.26 cr. The RI opens for subscription on January 23, 2026, and will close on February 06, 2026. The company is offering RI in the ratio of 1 for 2 to its eligible stakeholders as of the record date of January 09, 2026. The company is asking for full payment on application for the number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.25 cr. for this RI process, and from the net proceeds, it will utilize Rs. 29.76 cr. for working capital, Rs. 0.25 cr. for general corporate purposes.
The RI is solely lead managed by the company itself., and KFin Technologies Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 15.13 cr. will stand enhanced to Rs. 22.69 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 90.77 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total revenue / net profit, of Rs. 19.52 cr. / Rs. 2.46 cr. (FY24), Rs. 26.48 cr. / Rs. 3.41 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted net profit of Rs. 3.01 cr. on a total income of Rs. 11.76 cr. Surprisingly its offer document has financial data till December 31, 2024, and for latest data, it has given a link of its website. Based on this link, the above data is narrated for the investors. Is this type of documents is considered as a valid one for approval of the issue?
DIVIDEND POLICY:
The company has declared a dividend of Rs. 0.05 per share for FY24-25. It has adopted a dividend policy dividend policy, based on its financial performance and future prospects. While on page 167 it mentioned that it has paid a dividend for FY22-23 and 24-25, but page no. 35 has a data of dividend payment for only FY24-25. BSE Website mentioned two dividends paid by it of Rs. 0.05 per share in November 2023, and February 2025. Thus, the offer documents are having some confusing information.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 540242 (FV Rs. 2).
The scrip last closed on cum-right basis at Rs. 8.60 on January 08, 2026, and opened on an ex-right basis at Rs. 8.37 on January 09, 2026. Since then, it has marked a high/low of Rs. 9.40 / Rs. 6.82. The scrip last closed at Rs. 8.48 as of January 20, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 10.94 / Rs. 6.82.
The promoters’ holding has marginally inched up from 55.24% for Quarter ended June 30, 2025, to 56.08% for quarter ended December 31, 2025. The counter is well managed to keep it above RI price to tempt investors.
Conclusion / Investment Strategy
VSL is engaged in the marketing and trading of branded jewellery. It operates on third party contract model of business, and has no own manufacturing unit. The company has posted erratic financial performances for the reported periods. Based on its recent financial data, the issue appears exorbitantly priced. There is no harm in skipping this pricey and dicey bet
