Vaibhav Jewellers files draft IPO papers with Sebi to raise funds

Manoj Vaibhav Gems 'N' Jewellers Ltd, also known as Vaibhav Jewellers, has filed draft papers with the Securities and Exchange Board of India to raise funds through a public listing.

The initial public offering (IPO) will consist of a fresh issue of Rs 210 crore shares and an offer-for-sale of up to 4.30 million shares by its existing promoter Grandhi Bharata Mallika Ratna Kumari (HUF). Grandhi Bharata Mallika Ratna Kumari (HUF) now holds a 75.10 percent stake in the firm.

Bajaj Capital and Elara Capital are the lead managers to the issue.

The proceeds from the issue will be used to finance the setting up of eight showrooms. The firm will deploy Rs 12 crore towards capital expenditure for the eight retail outlets and Rs 160 crore on inventory, on an aggregate basis.

Vaibhav Jewellers, are a leading regional jewellery brand in South India. It is a hyperlocal jewellery retail chain with presence in the micro markets of Andhra Pradesh and Telangana with 13 showrooms (inclusive of two franchisee showrooms) across 8 towns and 2 cities.

The company has a market share of 5 percent of the overall Andhra Pradesh and Telangana jewellery market and 14 percent of the organised market in these two states in FY2021 with a total of 95,892 sq ft. It intends to open the retail showrooms in Tier 2 and Tier 3 cities of Andhra Pradesh and Telangana in FY23 and FY24.

In FY22, Vaibhav Jewellers reported a revenue of Rs 1693.92 crore against Rs 1433.57 crore a year ago. Net profit for the period stood at Rs 43.68 crore as against Rs 20.74 crore a year earlier. The EBITDA margin improved to 6.2 percent from 4.85 percent last year. As of August 15, its total outstanding debt was at Rs 458.53 crore.