Andhra Pradesh-based Manoj Vaibhav Gems N Jewellers to open IPO on September 22

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Andhra Pradesh-based jewellery retailer Manoj Vaibhav Gems N Jewellers will open its initial public offering (IPO) on September 22. The IPO will consist of a fresh issue of Rs 210 crore and an offer-for-sale (OFS) of 28 lakh shares by the promoter Grandhi Bharata Mallika Ratna Kumari (HUF).

The public issue will close on September 26, while the anchor book will be opened for a day on September 21.

The company has reserved half of the offer size for qualified institutional buyers (QIBs), of which up to 60% will be available for allocation to anchor investors. Further, 15% of the issue size is reserved for high net worth individuals (HNIs) and the remaining 35% for retail investors.

The net proceeds from the fresh issue will be used to establish eight new showrooms at a cost of Rs 172 crore in the financial year 2024-25. The remaining proceeds will be used for general corporate purposes.

Vaibhav Jewellers is a leading regional jewellery brand in South India. It has 13 showrooms in Andhra Pradesh and Telangana across eight towns and two cities. The company is led by a first-generation woman entrepreneur, Bharata Mallika Ratna Kumari Grandhi, along with her daughter Grandhi Sai Keerthana.

The company’s revenue from operations grew at a CAGR of 18.92% during FY21-FY23 to Rs 2,027.34 crore in FY23. Net profit during the same period grew at a CAGR of 85.81% to Rs 71.6 crore in FY23.

The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) increased at a CAGR of 43.42% to Rs 143 crore during the same period, with margin expansion from 4.85% in FY21 to 7.06% in FY23.

The company’s return on equity (ROE) and return on capital employed (ROCE) also remained strong in the past three financial years, rising from 9.49% and 10.54% in FY21 to 23.19% and 17.71% in FY23, respectively.

The IPO will be managed by Bajaj Capital and Elara Capital (India). The registrar to the offer is Bigshare Services.

The company’s shares are expected to start trading on the BSE and NSE on October 6.

This would be the eleventh company to float an IPO in September 2023, 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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