Manoj Vaibhav Gems 'N' Jewellers, which is also known as Vaibhav Jewellers, has announced price band at Rs 204-215 per share for the maiden public issue scheduled to be opening next week.
The bidding for the offering will take place for three working days from September 22 to September 26. The anchor book, which may be up to 60 percent of the qualified institutional buyers' (QIB) portion, will be opened for a day on September 21.
The Andhra Pradesh-based jewellery firm has reserved half of the offer size for the QIB, 15 percent for high networth individuals (non-institutional investors), and the remaining 35 percent for retail investors.
IPO Size
Vaibhav Jewellers aims to mop up Rs 270.2 crore via public offer at the upper price band. The offer comprises a fresh issuance of shares worth Rs 210 crore, and an offer-for-sale of 28 lakh shares worth Rs 60.2 crore by promoter Grandhi Bharata Mallika Ratna Kumari (HUF).
The establishment of the proposed 8 new showrooms will be mainly funded through net fresh issue proceeds, and the remaining money will be utilised for general corporate purposes.
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The hyperlocal jewellery retail chain with presence in Andhra Pradesh and Telangana has 13 showrooms including two franchisee showrooms, across eight towns and two cities. It is a 100 percent promoters-owned company.
Lot Size
Investors can bid for a minimum of 69 equity shares and in multiples of 69 shares thereafter. Retail investors can invest a minimum sum of Rs 14,835 for one lot (69 shares) and their maximum investment would be Rs 1,92,855 for 897 shares, as they cannot exceed their investment limit of Rs 2 lakh in IPO.
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High networth individuals, who are allowed to invest in the range of Rs 2-10 lakh in IPO, can invest a minimum Rs 2,07,690 for 966 shares and their maximum investment would be Rs 9,93,945 for 4,623 shares.
Financials
The first generation woman entrepreneur Bharata Mallika Ratna Kumari Grandhi along with her daughter Grandhi Sai Keerthan-led jewellery brand recorded healthy earnings growth in past financial years with profit growing at a CAGR of 85.81 percent during FY21-FY23 to Rs 71.6 crore in the financial year ended 2022-23, and the revenue from operations increasing at a CAGR of 18.92 percent during the same period to Rs 2,027.34 crore.
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The EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 143 crore in FY23 grew at a CAGR of 43.42 percent in the years during FY21-FY23, and the margin increased from 4.85 percent in FY21 to 7.06 percent in FY23.
Allotment Date
The finalisation of basis of allotment of IPO shares will be done by the jewellery retailer in consultation with the BSE, the designated stock exchange for the issue, by October 3, and the equity shares will be transferred to demat accounts of eligible investors by October 5. The refunds or unblocking of funds from ASBA account for unsuccessful investors will be taken place by the end of October 4.
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Vaibhav Jewellers will list its equity shares on the leading bourses - BSE and NSE - on October 6, as per IPO schedule.
The book running lead managers for the offer are Bajaj Capital, and Elara Capital (India). Bigshare Services is the registrar to the issue.
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