Manoj Vaibhav Gems 'N' Jewellers' IPO to open on September 22

Rayat Samachar
Mumbai (Gurudutt Wakdekar) 20.9.2023

     Vaibhav Jewelers is a leading regional jewelry brand in South India, with a presence in 13 showrooms across 8 cities in Andhra Pradesh and 2 cities in Telangana and ~4% market share in the total Andhra Pradesh and Telangana jewelry market. In FY2023, 10% of the organized markets in these two states have priced their initial public offerings in the range of ₹204 to ₹215 per equity share.

The Company's Initial Public Offer (IPO) will open for subscription on Friday, September 22, 2023 and close on Tuesday, September 26, 2023. Investors can bid for a minimum of 69 equity shares and thereafter in multiples of 69 equity shares.

The public issue at a face value of ₹10 per equity share includes a fresh issue of equity shares of up to Rs 210 crore and an offer for sale (OFS) of 2.8 million equity shares.

This jewelry brand is one of the oldest traders in Andhra Pradesh's organized jewelry retail market and is focusing on regional expansion in the high-growth areas of Andhra Pradesh as well as Telangana markets to create a market for branded jewelry. In 2007, they launched a flagship showroom in Visakhapatnam spread over 29,946 sq ft and four separate floors to provide the ultimate shopping experience.

77% of their retail showrooms are in Tier 2 and Tier 3 cities and the rest are in Hyderabad and Visakhapatnam. Each of their showrooms has a diverse and large inventory of designs across a wide range of products in gold, diamond, gems, platinum, and silver jewelry or articles. Their sub-brand "Vishka" caters to the premium segment of gold and diamond jewelry.

 The three months ended June 30, 2023, revenue from operations was Rs 508.90 crore and net profit was Rs 19.24 crore. In FY 2023, their income was Rs 2,027.34 crore, mainly from the sale of gold jewelry, compared to Rs 50.9 crore in 2005. The average revenue per retail showroom and EBITDA metrics of jewelry brands for fiscal 2023 were ₹155.95 crore and ₹11 crore respectively. Revenue and PAT grew at a CAGR of 18.92% and 85.81% between FY 2021 and 2023. Their e-commerce sales increased from Rs 4.16 crore in FY 2019 to Rs 36.40 crore in FY 2022.

Bajaj Capital Ltd and Elara Capital (India) Pvt Ltd are the book-running lead managers and Bigshare Services Pvt Ltd is the registrar of the offer. Equity shares are proposed to be listed on BSE and NSE.

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