The IPO for Manoj Vaibhav Gems ‘N’ Jewellers is scheduled to be available from September 22nd to September 26th. It aims to raise approximately ₹270 crores through the IPO, which consists of ₹210 crores as a fresh issue and an offer for sale of up to 4,300,000 equity shares with a face value of ₹10 each. The allocation for retail investors is 35%, while qualified institutional buyers (QIBs) have a 50% allocation, and high-net-worth individuals (HNIs) have a 15% allocation.
About Manoj Vaibhav Gems
Manoj Vaibhav Gems ‘N’ Jewellers, also known as Vaibhav Jewellers, was established in 2003 and has since become a prominent regional jewelry brand in South India. The company specializes in offering a wide range of jewelry products, including gold, gems, platinum, silver, diamonds, precious gemstones, and more. These products are available for purchase through their retail showrooms as well as on their website.
Manoj Vaibhav Gems serves diverse economic segments within the micro markets of Andhra Pradesh and Telangana. The company has a strong presence in both rural and urban markets, catering to the unique preferences of each. Currently, they operate a hyperlocal jewelry retail chain with 13 showrooms, which includes two franchisee-operated showrooms. These showrooms are spread across 8 towns and 2 cities in the region.
In the fiscal year 2022, the company achieved a revenue from operations of INR 1,693.92 crores. Notably, their revenues have demonstrated consistent growth, with a Compound Annual Growth Rate (CAGR) of 15.08% from FY 2020 to FY 2022. In terms of performance per retail showroom, the revenue for FY 2022 averaged INR 141.16 crores, while the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) per retail showroom stood at INR 8.75 crores.
The objectives of the issue are as follows:
Finance New Showrooms: The funds raised through this IPO will be used to finance the establishment of eight (8) new showrooms.
Capital Expenditure: A portion of the proceeds will be allocated towards covering the capital expenditure costs associated with setting up these eight new showrooms.
Inventory Costs: The IPO proceeds will also be utilized to cover the inventory costs related to these new showrooms.
General Corporate Purposes: Additionally, the funds will serve general corporate purposes, supporting the overall functioning and growth of the company.
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