Manoj Vaibhav Gems ‘N’ Jewellers IPO: All you need to know

The initial public offering (IPO) of Manoj Vaibhav Gems ‘N’ Jewellers will open for bidding on Friday, September 22. The three-day bidding will conclude on Tuesday, September 26. Here is what all you need to know about the upcoming IPO: Price band and lot size The company will be selling its shares in the fixed price band of Rs 204-215. Investors can make a bid for a minimum of 69 equity shares with each lot costing Rs 14,835 per share to the investors.

Issue size and mix
Manoj Vaibhav Gems ‘N’ Jewellers is looking to raise Rs 270.20 crore from primary markets by selling a total of 12,567,442 equity shares. The issue includes a sale of 97,67,442 fresh equity shares worth Rs 210 crore, while remaining is the offer for sale (OFS) component.

Utilization of proceeds
The net proceeds from the fresh issue shall to be utilized towards financing the proposed eight new showrooms including capital expenditure cost and inventory cost of new showrooms; and general corporate purposes.

OFS portion and sellers
A total 28,00,000 shares, aggregating to Rs 60.20 crore will be sold through offer for sale (OFS) route. Its promoter Grandhi Bharata Mallika Ratna Kumari (HUF) is the only selling shareholder in the OFS.

Important dates
The anchor book for the issue will open on Thursday, September 21. The company is likely to get listed at the bourses on Friday, October 6, with allotment status tentatively to be finalized on October 3, Tuesday.

Business
Manoj Vaibhav Gems ‘N’ Jewellers, known as Vaibhav Jewellers is a regional jewelry brand in South India and was incorporated in 2003, which offers gold, silver, and diamond jewelry, precious gemstones, and other jewelry products. The company sells its range through retail showrooms as well as through its website.

Vaibhav Jewellers cater to all economic segments of the micro markets of Andhra Pradesh and Telangana through their retail showrooms and their website with a focus on both rural and urban markets. The company has 13 showrooms, including two franchisee showrooms, across eight towns and two cities in Andhra Pradesh & Telangana.

Financial Health
Manoj Vaibhav Gems ‘N’ Jewellers reported a net profit of Rs 19.24 crore, with a revenue of Rs 510.21 crore for the period ended on June 30, 2023. However, its net profit stood at Rs 71.60 crore, with a revenue at Rs 2,031.30 crore for the financial year ended on March 31, 2023.

Retail portion
Retail investors will have 35 per cent shares reserved for them. The company has reserved 50 per cent of equity shares in the offer for the qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the equity shares.

Managers and Registrar
Bajaj Capital and Elara Capital (India) are the book running lead managers to the issue, while Bigshare Services has been appointed as the registrar for the issue. Shares of the company will be listed on both BSE and NSE