Manoj Vaibhav Gems N Jewellers IPO Subscribed 13% On Day 1

Manoj Vaibhav Gems N Jewellers Ltd. launched its initial public offering on Sept. 22.

The South Indian regional jewellery brand plans to raise up to Rs 270.20 crore via a fresh issue and offer for sale. The fresh issue will be worth a total of Rs 210 crore, while the offer for sale will be worth Rs 60.20 crore.

In the OFS segment, promoter Grandhi Bharata Mallika Ratna Kumari (HUF) will be the sole selling shareholder and will offload a total of 28 lakh shares. Out of the total IPO size, 50% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% is to be allotted to retail individual investors.

• Issue opens: Sept. 22.

• Issue closes: Sept. 26.

• Total issue size: Rs 270.20 crore

• Fresh issue size: Rs 210 crore

• OFS size: Rs 60.20 crore

• Face value: Rs 10 apiece

• Fixed price band: Rs 204–215 per share

• Minimum lot size: 69 shares.

• Listing: NSE, BSE.

The Company, also known as Vaibhav Jewellers, is a regional jewellery brand in South India. Incorporated in 2003, the company offers a range of gold, silver, and diamond jewellery along with precious gemstones.

The company has a presence in the micromarkets of Andhra Pradesh and Telangana and conducts business via their website and their 13 showrooms, inclusive of two franchisees, spread across eight towns and two cities. The company had a 4% market share of the overall Andhra Pradesh and Telangana jewellery markets and a 10% market share of the organised market in these two states in FY23, according to a Technopak Report.

• To finance the set up of the proposed eight new showrooms.

  (a) Estimated capital expenditure: Rs 12 crore.

  (b) Estimated inventory cost: Rs 160.02 crore.

• General corporate purposes.

Out of the Rs 12 crore estimated for the capital expenditure for setting up the new showrooms, Rs 3 crore is estimated to be deployed in FY24, while the balance of Rs 9 crore is estimated to be deployed in FY25.

Out of the Rs 160 crore estimated for the inventory cost for setting up the new showrooms, Rs 40 crore is estimated to be deployed in FY24, while the balance of Rs 120 crore is estimated to be deployed in FY25.

The IPO has been subscribed 13% or 0.13 times as of 5:00 p.m. on Friday.

• Institutional investors: 0

• Non-institutional investors: 0.05 times.

• Retail investors: 0.25 times.