Manoj Vaibhav Gems 'N' Jewellers (Vaibhav Jewellers) made a muted debut on the bourses today, October 3, 2023. The stock listed at ₹215 on the NSE and BSE, the same as the issue price.
The ₹270.20 crore IPO was open for subscription between September 22 and September 26 at a price band in the range of ₹204-215 per share.
The public issue was subscribed to 2.25 times in total as it received bids for 2.05 crore equity shares as against 91.20 lakh shares on the offer. The IPO has been booked 1.66 times in the retail category and 5.18 times in the Non-Institutional Investors’ (NII) category. The Qualified Institutional Buyers (QIB) portion was subscribed to 1.06 times at the end of the bidding period.
Vaibhav Jewellers IPO was a book-built issue. The offer comprises a fresh issuance of shares worth ₹210 crore and an offer-for-sale of 28 lakh shares worth ₹60.2 crore by promoter Grandhi Bharata Mallika Ratna Kumari (HUF).
The company intends to utilise net proceeds from the fresh issue sale towards financing the proposed eight new showrooms including capital expenditure cost and inventory cost of new showrooms; and general corporate purposes. On the other hand, proceeds from OFS shall go to the selling shareholders.
Ahead of the IPO, it raised ₹81.06 crore from eight anchor investors including Quantum-State Investment Fund, Tano Investment Opportunities Fund, Nexus Global Opportunities Fund, Coeus Global Opportunities Fund, Neomile Growth Fund, AG Dynamic Funds, Chhattisgarh Investments and Eminence Global Fund investors by allocating 37,70,160 equity shares at ₹215 apiece.
Vaibhav Jewellers is a regional jewelry brand in South India and was incorporated in 2003. It offers gold, silver, and diamond jewelry, precious gemstones, and other jewelry products. It sells its product range through its retail showrooms as well as through its website. The company has 13 showrooms across eight towns and two cities in these two states, including two franchisee showrooms. It is a 100 percent promoter-owned company.
The firm recorded robust earnings growth in past years with profit growing at a compound annual growth rate (CAGR) of 85.81 percent during FY21-FY23 to ₹71.6 crore in the financial year ended 2022-23, and the revenue from operations increasing at CAGR of 18.92 percent during the same period to ₹2,027.34 crore.
Elara Capital (India) and Bajaj Capital were the book-running lead managers to the issue.
StoxBox of BP Equities has a ‘subscribe’ rating for the issue.
"Based on the prospects of the sector, the company’s product catalogue, its stronghold in the southern markets and a good track record, the pricing looks attractive vis-à-vis its peers as it values at 11.7 times of its FY23 earnings. We, therefore, recommend a 'subscribe' rating to the issue," it added.