Manoj Vaibhav Gems ‘N’ Jewellers Limited is one of the leading jewellery businesses in India. The company has a significant presence in the micro markets of Telangana and Andhra Pradesh. Its wide presence covers 8 towns and 2 cities with over 13 showrooms. As per the FY2023 reports, the company holds a market share of about 4% of the jewellery market in Telangana and Andhra Pradesh.
The company has recently announced the launch of its Initial Public Offering on September 22 2023. If you are interested and looking forward to investing, get an insight into its financials before proceeding.
Also Read: How To Apply For An IPO?
Table of Content
IPO Details
Here are the details of the upcoming initial public offering of Manoj Vaibhav Gems ‘N’ Jewellers Limited:
| IPO Remains Open on | September 22, 2023 to September 26, 2023 |
| Listing Date | October 6, 2023 |
| Price Band | Rs. 204 to Rs. 215 each share |
| Face Value | Rs. 10 each share |
| Lot Size | 69 shares |
| Total Issue Size | 12,567,442 shares (totalling up to Rs. 270.2 crore) |
| Fresh Issue | 9,767,442 shares (totalling up to Rs. 210 crore) |
| Offer for Sale | 2,800,000 shares (totalling up to Rs. 60 crore) |
| Type of Issue | Book Built |
| Listing on Exchanges | NSE, BSE |
| Share Holding before Issuance | 39,080,000 |
| Share Holding after Issuance | 48,847,442 |
About the Company
Manoj Vaibhav Gems ‘N’ Jewellers Limited is one of the finest jewellery brands in South India. Remarkably led by Mrs. Bharata Mallika Ratna Kumari Grandhi, a first-generation woman entrepreneur along with her daughter Grandhi Sai Keerthana, the jewellery business has spread over Telangana and Andhra Pradesh.
Vaibhav Gems ‘N’ Jewellers were one of the first to enter the organised market of Andhra Pradesh with an objective of regional expansion, especially in the untapped regions.
The Indian jewellery market will supposedly reach a valuation of 92 billion USD at a CAGR of 15% over the coming 3 years. The company initially started its operation in 1994 with its first retail showroom in Vishakhapatnam. Now, it is going to launch its IPO on September 22 2023.
Also Read: IPO investment strategy: Tips for investing in an IPO
IPO Tentative Timetable
Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO will be open for subscription from September 22 2023 till September 26 2023. Here are the important dates regarding the IPO:
| Anchor Allocation Date | Thursday, 21st September, 2023 |
| IPO Opening Date | Friday, 22nd September, 2023 |
| IPO Closing Date | Tuesday, 26th September, 2023 |
| UPI Mandate Confirmation Cut-Off Date | 5 PM, 26th September, 2023 |
| Allotment Basis | Tuesday, 3rd October, 2023 |
| Initiation of Refunds | Wednesday, 4th October, 2023 |
| Listing Date | Thursday, 5th October 2023 |
| Share Credit into Demat | Friday, 6th October, 2023 |
IPO Lot Size
The following table lays down the details regarding minimum and maximum investment for HNI and retail investors:
| Application | Lots | Share | Amount |
| Retail (Min) | 1 | 69 | Rs. 14,835 |
| S-HNI (Min) | 14 | 966 | Rs. 207,690 |
| B-HNI (Min) | 68 | 4,692 | Rs. 1,008,780 |
| Retail (Max) | 13 | 897 | Rs. 192,855 |
| S-HNI (Max) | 67 | 4,623 | Rs. 993,945 |
Also Read: How Can You Analyse An IPO?
Company Financials
Going through the company’s financial details will help you get a clearer idea of its current situation and make an informed decision. Find the details in the following table (all the figures are in Rs. million except EPS):
| Parameters as of | 31st March 2023 | 31st March 2022 | 31st March 2021 |
| Total Assets | 10,778.57 | 8,995.33 | 8,030.99 |
| Total Liabilities | 7,333.07 | 6,266.74 | 5,741.13 |
| Total Expenses | 19,354.69 | 16,392.87 | 14,041.17 |
| Total Revenue | 20,273.44 | 16,939.19 | 14,335.69 |
| Profit After Tax | 715.96 | 436.79 | 207.37 |
| EBITDA | 1,430.55 | 1,049.59 | 695.51 |
| Earnings Per Share (Basic & Diluted) | 18.32 | 11.18 | 5.31 |
Strengths
Manoj Vaibhav Gems ‘N’ Jewellers has some strong factors that make the IPO worth investing in. Here are some of those:
- The company’s distinctive approach towards building a regional home-grown brand based on a hyper-local retail strategy has brought it a loyal customer base and long-standing relationship with its suppliers and workers.
- Rural markets contribute about 58% of the jewellery demand in India. But they have limited choice and access to designs, quality and transparent pricing. The company aims to grow by targeting the micro markets of Telangana and Andhra Pradesh.
- The company has a team of experienced promoters and a senior management team that makes the smooth implementation of strategy possible in business operations.
- Manoj Vaibhav Gems ‘N’ Jewellers was one of the first organised jewellers in Andhra Pradesh when it set up shop in 1994. This has given it an early mover advantage, which makes it easy for the company to capture market share.
Risk Involved
Along with its strengths, the company also has some risks involved that potential investors should be informed about. Here are some of them:
- The company mainly serves in Tier 2 and Tier 3 cities with an emphasis on rural and semi-rural market segments. Hence, failing to efficiently manage and expand their retail network can result in loss or low profitability which will semantically affect the financial prospects.
- Unavailability or high costs of precious stones and metals can affect their business.
- The inability to gather funding and financial aid, as and when required, can result in low production and adversely impact the business.
Also Read: Risk of investing in IPO
Summary
Manoj Vaibhav Gems ‘N’ Jewellers will launch a book-built issue on 22nd September to raise Rs. 270.2 crore. The issue will include fresh issues totalling Rs. 210 crore and an offer for sale of Rs. 0.28 crore shares totalling Rs. 60.20 crore. The fresh issuance will allow the company to open 8 new showrooms. The subscription price is set within Rs. 204 and Rs. 215 for each share.
