The initial public offering of Andhra Pradesh-based Manoj Vaibhav Gems N Jewellers will be opening for subscription on September 22, which has a fresh issue component of Rs 210 crore and an offer-for-sale (OFS) part of 28 lakh shares by the promoter Grandhi Bharata Mallika Ratna Kumari (HUF).
The public issue will be concluded on September 26, while the anchor book will be opened for a day on September 21, as per the IPO schedule available in the red herring prospectus.
The company has reserved half of the offer size for qualified institutional buyers of which, up to 60 percent portion will be available for allocation to anchor investors. Further, 15 percent of the issue size is reserved for high networth individuals (non-institutional investors) and the remaining 35 percent for retail investors.
The net fresh issue proceeds will be utilised mainly for the establishment of proposed 8 new showrooms at a cost of Rs 172 crore in the financial year ended March FY24 and March FY25. And the remaining fresh issue money will be used for general corporate purposes.
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About Company
Vaibhav Jewellers is a leading regional jewellery brand in South India led by a first generation woman entrepreneur Bharata Mallika Ratna Kumari Grandhi along with her daughter Grandhi Sai Keerthana, with 13 showrooms in Andhra Pradesh & Telangana across 8 towns and 2 cities.
The hyperlocal jewellery retail chain clocked an 18.92 percent CAGR growth in revenue from operations during FY21-FY23, to Rs 2,027.34 crore in the year ended March FY23. Net profit during the same period grew at a CAGR of 85.81 percent to Rs 71.6 crore in FY23.
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Its EBITDA (earnings before interest, tax, depreciation and amortisation) increased at a CAGR of 43.42 percent to Rs 143 crore during the same period, with margin expansion from 4.85 percent in FY21 to 7.06 percent in FY23.
Even the return on equity and return on capital employed remained strong in the past three financial years, rising from 9.49 percent and 10.54 percent in FY21, to 23.19 percent and 17.71 percent in FY23, respectively.
Listing Date
The jewellery retailer in consultation with the BSE is going to finalise the basis of allotment of IPO shares by October 3, and will credit equity shares to the demat accounts of successful investors by October 5. The refunds will be credited to bank accounts of unsuccessful investors by October 4.
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The trading in equity shares will start on the BSE and NSE with effect from October 6.
Bajaj Capital, and Elara Capital (India) are the merchant bankers to the issue, while Bigshare Services is the registrar to the offer.
This would be eleventh company floating public issue in the month of September, after Sai Silks (Kalamandir), Signature Global, Yatra Online, Zaggle Prepaid Ocean Services, SAMHI Hotels, RR Kabel, EMS, Jupiter Life Line Hospitals, and Ratnaveer Precision Engineering.
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