Introduction:
After the success of Senco Gold and Diamonds, another renowned jewellery-business company, Manoj Vaibhav Gems ‘N’ Jewellers, has come up with its Initial Public Offering (IPO). The company plans to raise Rs. 215 per equity share at the upper price band of Rs. 270.20 crores from public investors.
The IPO opened for public subscription on Friday, 23 September 2023, and will remain open till 26 September. On the first day of the bidding, the public issue subscribed by 26% in the retail category.
Continue reading to know more details about the Manoj Vaibhav Gems ‘N’ Jewellers IPO, and determine whether it’s profitable to invest in it.
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About Manoj Vaibhav Gems N Jewellers:
Manoj Vaibhav Gems N Jewellers, also known as Vaibhav Jewellers, is a renowned jewelry brand in South India. It offers readymade jewelry in gold, silver, diamond, and other precious stones through a chain of retail showrooms and online marketplaces.
As of 31 March 2023, the company had 13 showrooms spread across eight towns and two cities in Andhra Pradesh and Telangana. Its products are sold under five categories – daily wear jewellery, bridal jewellery, occasion wear jewelry, antique jewellery, and temple jewellery.
The company is planning to open eight new showrooms in diverse regions and aims to use the IPO proceeds for the same.
Key Strengths of Manoj Vaibhav Gems N Jewellers
The key strengths of Manoj Vaibhav Gems N Jewellers, as mentioned in its Red Herring Prospectus (RHP), are as follows:
- A renowned jewelry brand in South India built on dynamic retail strategies
- Among the oldest and most trusted jewelry brands in Andhra Pradesh
- The focus is on strengthening the business through online sales in the rural and urban markets
- Effective marketing strategy with an excellent track record
- Known for offering traditional and modern designs with a strong focus on quality, transparency, and customer service
- Ability to maintain loyal relations with its customers for a long time
Exciting opportunities ahead: Don’t forget to apply for Upcoming IPOs!
Risks or Weaknesses Highlighted
Below are a few risks or weaknesses associated with Manoj Vaibhav Gems N Jewellers as highlighted in the RHP:
- Exposed to risks associated with the expansion of a jewelry retail business
- Business is highly dependent on the availability of quality raw materials, jewelry designers, and craftsmen
- Business is prone to seasonal swings. The lack of revenues during off-seasons can impact the company’s ability to operate smoothly
- There are certain outgoing litigation proceedings against the company
- Operates in a highly competitive industry
- The company has faced cash flow problems in the past
Key Financials of Manoj Vaibhav Gems N Jewellers:
The table below captures the company’s financials. All details are as per the RHP dated 12 September 2023 on the Securities and Exchange Board of India’s (SEBI) website:
| Particulars |
For Period Ended June 30, 2023 |
As of and For FY Ended March 31 |
| 2023 |
2022 |
| Share Capital |
39 |
39 |
10 |
| Net Worth |
364 |
345 |
273 |
| Total Borrowings |
460 |
460 |
478 |
| Revenue From Operations |
509 |
2027 |
1694 |
| EBITDA Adjusted |
37 |
143 |
105 |
| Profit After Tax |
19 |
72 |
44 |
| Earnings Per Share (Diluted) |
5 |
18 |
11 |
*Amount in Crores
As you can see, the revenues and profits have thrived in the last two years. This reflects the company’s stronghold on the market and its future growth prospects. Despite being capital-intensive, it has maintained an impressive ROE and ROCE.
Details of the IPO:
Manoj Vaibhav Gems N Jewellers IPO comprises a fresh issue of equity shares worth Rs. 210 crores and on offer for sale of up to Rs. 60.20 crores. Up to 50% of the offer has been reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 35% for retail investors.
The price range for the IPO has been fixed between Rs. 204 to Rs. 215 per share. You can apply for a minimum of 69 shares (1 lot) and in multiples thereof. More details are in the table below:
| IPO Date |
22 Sept to 26 Sept 2023 |
| Listing Date |
06-Oct-23 |
| Face Value |
Rs. 10 per equity share |
| Price Band |
Rs. 204 to Rs. 215 per share |
| Lot Size |
69 shares |
| Total Issue Size |
Rs. 270.20 crores |
| Fresh Issue |
9,767,442 shares (aggregating up to Rs. 210 crores) |
| Offer for Sale |
2,800,000 shares (aggregating up to Rs. 60.20 crores) |
| Issue Type |
Book-built IPO |
| Listing At |
NSE, BSE |
Considering an ROE of 23.2% in FY2023, the IPO may appear attractive. However, for personalized advice, it's advisable to consult with a financial advisor who can assess if this aligns with your financial goals and risk tolerance. Additionally, do your own research on the IPO and market conditions to make an informed decision.
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