Vaibhav Jewellers IPO to open on September 22; Key details you need to know

22 Sep 2023 , 06:50 AM

Manoj Vaibhav Gems ‘N’ Jewellers Limited, also known as Vaibhav Jewellers, is a prominent regional jewelry brand based in South India. Their diverse product range encompasses gold, silver, and diamond jewelry, as well as precious gemstones and other exquisite jewelry items. These offerings are made available to customers not only through their network of retail showrooms but also via their official website.

The company is coming up with its IPO, details of it are provided under:

IPO Schedule:

• The IPO will open for subscription on September 22.
• The public issue will conclude on September 26.
• The anchor book will be opened on September 21.
• Basis of allotment will be finalized by October 3.
• Equity shares will be transferred to demat accounts by October 5.
• Refunds or unblocking of funds for unsuccessful investors will take place by the end of October 4.
• Vaibhav Jewellers will list its equity shares on BSE and NSE on October 6.

Price Band: The price band for the IPO is set at Rs 204 to Rs 215 per share.

Bid and Investment Limits:

• Investors can bid for a minimum of 69 equity shares and in multiples of 69 shares thereafter.
• Retail investors can invest a minimum of Rs 14,835 for one lot (69 shares) and a maximum of Rs 1,92,855 for 897 shares, staying within the Rs 2 lakh investment limit in the IPO.
• High net worth individuals (HNI) can invest a minimum of Rs 2,07,690 for 966 shares and a maximum of Rs 9,93,945 for 4,623 shares.

Allocation:

• Half of the offer size is reserved for Qualified Institutional Buyers (QIBs).
• 15 percent is reserved for high net worth individuals (non-institutional investors).
• The remaining 35 percent is reserved for retail investors.

Fund Utilization: The company aims to raise Rs 270.2 crore at the upper price band. The proceeds will be used primarily for establishing 8 new showrooms at a cost of Rs 172 crore in the financial years ending in March 2024 and March 2025. The remaining funds will be utilized for general corporate purposes.

Promoter Share Sale: The IPO includes a fresh issuance of shares worth Rs 210 crore and an offer-for-sale of 28 lakh shares worth Rs 60.2 crore by the promoter Grandhi Bharata Mallika Ratna Kumari (HUF).

Merchant Bankers and Registrar:

• Bajaj Capital and Elara Capital (India) are the merchant bankers to the issue.
• Bigshare Services is the registrar to the offer.

Bharata Mallika Ratna Kumari Grandhi, a pioneering female entrepreneur of the first generation, and her daughter, Grandhi Sai Keerthan, have steered their jewelry brand towards impressive financial growth in recent years. Their company has witnessed remarkable profitability, with profits soaring at a Compound Annual Growth Rate (CAGR) of 85.81 percent from FY21 to FY23, reaching a substantial Rs 71.6 crore in the fiscal year ending in 2022-23. Additionally, their revenue from operations experienced a consistent upward trajectory, achieving a CAGR of 18.92 percent during the same period, culminating in an impressive figure of Rs 2,027.34 crore.

Furthermore, the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) surged to Rs 143 crore in FY23, reflecting a remarkable CAGR of 43.42 percent over the FY21-FY23 period. Notably, their EBITDA margin demonstrated significant improvement, rising from 4.85 percent in FY21 to an impressive 7.06 percent in FY23. This robust financial performance underscores their effective management and strategic vision in the jewelry industry.