Manoj Vaibhav Gems N Jewellers' IPO Oversubscribed 2.25 Times on Final Day

26 Sep 2023 , 09:57 PM

Manoj Vaibhav Gems N Jewellers’ public offering has garnered a solid response from various investor categories, with bids received for 2.05 crore equity shares against an issue size of 91.2 lakhs. As the final day of bidding on September 26 unfolds, the offer has been oversubscribed 2.25 times.

Among investors, high net-worth individuals emerged as strong supporters, subscribing to their allotted quota by 5.18 times, while retail investors displayed enthusiasm with bids at 1.66 times the portion set aside for them. Qualified institutional buyers (QIBs) also participated actively, subscribing 1.06 times the reserved portion.

The IPO allocation includes 50% for QIBs, 15% for high net-worth individuals, and the remaining 35% for retail investors. The offering commenced on September 22 and achieved a subscription rate of 58% by the second day of bidding.

Vaibhav Jewellers aims to raise Rs 270.20 crore through the initial public offering, comprising a fresh issue of Rs 210 crore in shares by the company and an offer-for-sale (OFS) of Rs 60.20 crore in shares by Grandhi Bharata Mallika Ratna Kumari (HUF). The price band for the offering is set at Rs 204-215 per share.

The hyperlocal jewelry retail chain, with a presence in the micro markets of Andhra Pradesh and Telangana through its 13 showrooms, plans to utilize the net fresh issue proceeds to establish eight additional showrooms and allocate the rest to general corporate purposes.

The basis of allotment for IPO shares will be finalized by the company on October 3, with equity shares set to be credited to successful investors’ demat accounts by October 5. The listing of these shares on the BSE and NSE is scheduled to commence from October 6, in line with the IPO schedule.