Manoj Vaibhav Gems 'N' Jewellers Limited IPO: All you need to know

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Manoj Vaibhav Gems 'N' Jewellers Limited IPO

Manoj Vaibhav Gems ‘N’ Jewellers Limited is offering shares to the public from 22 September 2023 to 26 September 2023. Each share costs between ₹204 and ₹215 and has a face value of ₹10. You can buy a minimum of 69 shares for ₹14,835. They plan to list these shares on 6 October 2023. The total value of this offering is ₹270.20 Crores, including a ₹210 Crore fresh issue and ₹60.20 Crore offer-for-sale (OFS).

Manoj Vaibhav Gems ‘N’ Jewellers Limited: Business Overview

Manoj Vaibhav Gems 'N' Jewellers Ltd, also known as Vaibhav Jewellers, was established in 2003. It's a leading jewellery brand in South India that sells gold, silver, diamond, and other gemstone jewellery. They have a mix of traditional and modern designs and offer products both online and in 13 showrooms across Andhra Pradesh and Telangana, two states known for their love of jewellery. They serve both rural and urban customers.

Manoj Vaibhav Gems 'N' Jewellers Ltd offers five jewellery categories:

Daily wear: Simple, plain gold items like bangles and rings.

Bridal: Detailed pieces for weddings.

Occasion Wear: Special designs for events like Mehandi, Sangeet, and Roka.

Antique: Ethnic styles for festivals and housewarmings.

Temple Jewellery: Handcrafted, traditional pieces for festive wear.

Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO: Details

IPO Open and Close DateSep 22, 2023 to Sep 26, 2023
IPO price range₹204 to ₹215 per share
Lot Size69 Shares
IPO size₹270.20Cr
Basis of AllotmentTuesday, 3 October 2023
Credit of Shares to DematThursday, 5 October 2023
Listing DateFriday, 6 October 2023

(Source: DRHP)

Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO: Reservations

QIB Shares OfferedNot more than 50% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 35% of the Offer

(Source: DRHP)
Bajaj Capital Limited and Elara Capital (India) Private Limited have been appointed as the book-running lead managers for the Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO, while Bigshare Services Private Limited will serve as the registrar to the issue. The shares are expected to be listed on both BSE and NSE, with a tentative listing date of October 6, which falls on a Friday.

The Objective of the Issue:

The net proceeds from the issue will be utilised towards:

1) To Finance the Establishment of the proposed 8 new showrooms, i.e.

  •     Capital expenditure cost for the proposed eight (8) new showrooms,
  •      Inventory cost for the proposed eight (8) new showrooms,

2)General corporate purposes.

Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO: Financial Performance

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue2031.31697.691443.17
Profit/Loss After Tax71.6943.8720.9
Current Assets987.14802.19697.97
Current Liabilities600.7496.62434.02

(source: DRHP & RHP)

The Current Assets have increased from ₹ 802.19 Crores in March 2022 to ₹ 987.14 Crores in March 2023, with an increase of 20.05% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from ₹ 1697.69 Crores in FY22 to ₹ 2031.30 Crores in FY23, with a conspicuous increase of 19.65%. Moreover, Net profits have also seen an increase, going up from ₹ 43.87 Crores in FY22 to ₹ 71.69 Crores in FY23, which has increased by 63.41% over the past year.

Key Performance IndicatorValues
EPS (Rs)18.32
Return on Equity (ROE)23.19%
P/E (x)11.47

(source: DRHP & RHP)

Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO: Strengths

  • They are a top local brand that focuses on a specific regional strategy.
  • Started early and gained a benefit in Andhra Pradesh.
  • The market strategy helps them reach more people, connect deeply with customers, and keep loyal customers.
  • Initially, the business served both rural and urban customers and gradually began to grow and establish its brand in smaller cities.
  • They can set rules and controls that help their business work well and grow in specific areas of Andhra Pradesh and Telangana.
  • The company offers a variety of jewellery, from gold to gemstones, serving customers with different budgets.

Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO: Risk

If the company can't manage and grow its stores effectively, new showrooms might not be profitable, hurting the company's finances and performance.

If quality materials like gold, silver, and gems become unavailable or too expensive, it could hurt the company's operations and finances.

If the company can't diversify its products or adapt to market changes, it could negatively impact its business and finances.

The company's main showrooms are in Andhra Pradesh and Telangana. Growing there comes with risks from political, economic, or natural events that could reduce sales.

Manoj Vaibhav Gems ‘N’ Jewellers Limited: Peer Comparison

Name of the CompanyRevenue (In Crore)PAT (In Crore)P/E RatioMcap (In Crore)
Manoj Vaibhav Gems 'N' Jewellers Ltd2031.371.69NANA
Titan Company Ltd10,474736106.682,94,780.52
Thangamayil Jewellery771.5431.0340.033,359.24
Kalyan Jewellers India Ltd3396.4269.7938.922,599.36
Tribhovandas Bhimji Zaveri Limited465.5311.7224.83738.37

(source: DRHP & RHP)