The public offer of Manoj Vaibhav Gems N Jewellers received decent response from all categories of investors, with bids coming in for 2.05 crore equity shares against an issue size of 91.2 lakhs. The offer has been subscribed 2.25 times so far on the final day of bidding on September 26.
High net-worth individuals were the leading supporters to the offer among investors, buying 5.18 times the allotted quota, while retail investors have bid 1.66 times the portion set aside for them. Qualified institutional buyers (QIB) have bought 1.06 times the reserved portion.
Half of the issue size is reserved for QIBs, 15 percent for high net-worth individuals and the remaining 35 percent for retail investors. The offer was opened on September 22 and since then it was subscribed 58 percent till the second day of bidding.
Vaibhav Jewellers intends to raise Rs 270.20 crore from the initial public offering that consists of a fresh issue of Rs 210 crore of shares by the company, and an offer-for-sale (OFS) of Rs 60.20 crore of shares by Grandhi Bharata Mallika Ratna Kumari (HUF). The price band for the offer is set at Rs 204-215 per share.
The hyperlocal jewellery retail chain with presence in the micro markets of Andhra Pradesh and Telangana with 13 showrooms will spend net fresh issue proceeds for setting up eight showrooms and the rest on general corporate purposes.
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Vaibhav Jewellers, the regional jewellery brand led by first-generation woman entrepreneur Bharata Mallika Ratna Kumari Grandhi, along with her daughter Grandhi Sai Keerthana, raised Rs 81.06 crore from eight anchor investors on September 21, including Nexus Global Opportunities Fund, Tano Investment Opportunities Fund, Quantum-State Investment Fund, and Coeus Global Opportunities Fund.
The financial performance reported by the company in the past fiscal years remained strong with profit recording a CAGR of 85.81 percent during FY21-FY23 to Rs 71.6 crore, and the revenue averaging a growth rate of 18.92 percent during the same period to Rs 2,027.34 crore.
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Grey market premium
The basis of allotment of IPO shares will be finalised by the company on October 3 and the equity shares will be credited to demat accounts of successful investors by October 5.
The listing of its equity shares will commence on the BSE and NSE with effect from October 6, as per the IPO schedule.
The listing date mentioned by the company is as per the old listing timeline, which may change as the Sebi has made it voluntary for companies which launched IPOs since September 1 this year to list their shares on the bourses in T+3 timeline (Issue closing date + three working days) instead of old T+6 timeline.
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The market regulator has made it mandatory for all companies launching IPOs with effect from December 1 this year, to list shares on the bourses in T+3 timeline.
Vaibhav Jewellers' IPO shares were available with around 6-7 percent premium over the upper price band, in the grey market, analysts said on anonymity. The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.
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