Manoj Vaibhav Gems 'N' Jewellers Limited IPO - Review, Valuation & GMP

Manoj Vaibhav Gems 'N' Jewellers Limited - Complete Overview

Established in 2003, Manoj Vaibhav Gems 'N' Jewellers Limited, popularly known as Vaibhav Jewellers, is a prominent regional jewellery brand in South India. 

This company operates as a hyperlocal jewellery retail chain, serving the micro markets of Andhra Pradesh and Telangana. It boasts a network of 13 showrooms, including two franchisee showrooms, across 8 towns and 2 cities in this region.

Vaibhav Jewellers has captured a substantial market share, accounting for approximately 4% of the overall jewellery market in Andhra Pradesh and Telangana, and around 10% of the organized jewellery market in these states during FY2023, as per the Technopak Report.

The company has strategically positioned itself as a retailer that prioritizes 'Relationships, by Design,' placing a strong emphasis on providing customers with a wide range of designs, high-quality products, transparency, and excellent customer service.

Vaibhav Jewellers offers an extensive array of products in Gold, Diamond, Gems, Platinum, and Silver Jewelry, catering to both rural and urban markets through its online and offline platforms.

For the three-month period ending June 30, 2023, as well as in the financial years ending March 31, 2023, March 31, 2022, and March 31, 2021, the company's operational revenue stood at Rs. 5,088.96 million, Rs. 20,273.44 million, Rs. 16,939.19 million, and Rs. 14,335.69 million, respectively.

 

What does the company do?

 Vaibhav Jewellers is a leading regional jewellery brand in South India.

 

 

Company Products

The company offers a wide range of products in Gold, Diamond, Gems, Platinum and silver Jewellery and/or articles.

 

IPO Overview 

The Manoj Vaibhav Gems 'N' Jewellers IPO date is scheduled from September 22, 2023, through September 26, 2023. The total issue size for this upcoming IPO is Rs. 270.20 Crores.

The Manoj Vaibhav Gems 'N' Jewellers IPO price is set between Rs. 204 to Rs. 215 per share, considering a face value of Rs. 10 per share. The anticipated listing date for this issue is October 6, 2023, on both the NSE and BSE platforms.

 

Manoj Vaibhav Gems 'N' Jewellers Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	22 September 2023
IPO Closing Date	26 September 2023
IPO Allotment Date	3 October 2023
Refund initiation	4 October 2023
IPO Listing Date	6 October 2023

 

Manoj Vaibhav Gems 'N' Jewellers Limited IPO Details 

IPO Opening & Closing Date	22 September to 26 September 2023
Face Value	Rs.10 Per Share
Issue Price	Rs.204 to Rs.215 per share
Lot Size	69 Shares
Price of 1 Lot	Rs. 14,835
Issue Size	12,567,442 Shares (aggregating up to Rs. 270.20 Cr)
Offer for Sale	2,800,000 shares of Rs. 10 (aggregating up to Rs. 60.20 Cr)
Fresh Issue	9,767,442 Shares (aggregating up to Rs. 210.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Manoj Vaibhav Gems 'N' Jewellers Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

Manoj Vaibhav Gems 'N' Jewellers Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	803.10	899.53	1077.86
Total Revenue	1443.18	1697.70	2031.30
PAT	20.74	43.68	71.60
Net Worth	228.99	272.86	344.55
Reserve & Surplus	219.22	263.09	305.47
Total Borrowings	463.43	477.73	460.00

 

Details of the product-wise revenue break-up

Particulars	Revenue contribution (in Rs. million)
Financial Year 2022-23
Silver Jewellery/Articles	803.12
Platinum Jewellery	11.31
Gold Jewellery	18,090.54
Diamond	822.95
Stones	535.84
Others	9.68
Total Revenue	20,273.44
Financial Year 2021-22
Silver Jewellery/Articles	678.89
Platinum Jewellery	9.96
Gold Jewellery	15,161.33
Diamond	650.40
Stones	433.61
Others	5.00
Total Revenue	16,939.19
Financial Year 2020-21
Silver Jewellery/Articles	454.11
Platinum Jewellery	8.91
Gold Jewellery	13,186.66
Diamond	408.11
Stones	269.95
Others	7.95
Total Revenue	14,335.69

 

Objective of the Issue

The net proceeds will be allocated for the following objectives:

• Financing the establishment of eight (8) new showrooms, including capital expenditure and inventory costs for new showrooms.
• Meeting general corporate needs.

 

Promoters and Management of Manoj Vaibhav Gems 'N' Jewellers Limited

Grandhi Bharata Mallika Ratna Kumari (HUF), Bharata Mallika Ratna Kumari Grandhi, and Grandhi Sai Keerthana are the promoters of the company.

Pre-issue Promoter shareholding	100.00%
Post-issue Promoter shareholding	74.27%

 

Peer Comparison

Below are the listed peers of the company

Company Name	Revenue from Operations	Total Income	Net Worth
Manoj Vaibhav Gems 'N' Jewellers Ltd (Standalone)	20,273.44	20,313.03	3,445.50
Titan Company Ltd (Consolidated)	4,05,750.00	4,08,830.00	118510.00
Thangamayil Jewellery Ltd (Standalone)	31,525.50	31,559.00	3887.90
Kalyan Jewellers India Ltd (Consolidated)	1,40,714.47	1,41,093.38	36347.11
Tribhovandas Bhimji Zaveri Limited (Consolidated)	23,936.26	23,986.01	5604.08

 

IPO's Valuations

With Manoj Vaibhav Gems 'N' Jeweller IPO price ranging from Rs. 204 to Rs. 215 per share and an EPS of Rs. 18.32, the PE ratio for the IPO valuation, considering the upper price band, stands at approximately 11.73.

 

Dividend Policy

According to the Manoj Vaibhav Gems 'N' Jeweller IPO DRHP, the company has not distributed any dividends in the past, and any prospective dividend payments will depend upon the company's financial performance.

 

IPO's Strengths

• A prominent home-grown regional brand with a strong foundation in hyperlocal retail strategy.
• Benefitted from being an early entrant in the state of Andhra Pradesh.
• A dedicated focus on strengthening the business through a rural market-oriented approach.
• Under the company's guiding principle of 'Relationships, by Design,' a wide range of product designs is offered at various price points to cater to customers across different budget segments.
• The Go-To-Market strategy of the company serves as a critical driver, expanding market reach, fostering deep customer connections, and cultivating a loyal customer base.
• The company boasts an experienced promoter and a proficient senior management team.
• The ability to establish operational parameters and implement internal control measures allows the company to excel in both performance and business expansion, not only in the micro markets of Andhra Pradesh and Telangana but also in other regions through its e-commerce platform.

 

IPO Weaknesses 

• The Company, along with its Promoters and Directors, is currently entangled in ongoing legal proceedings.
• The Promoter and some of the Directors may hold interests in entities involved in businesses similar to that of the Company.
• The company operates within a competitive market.
• There is a possibility of encountering price fluctuations or potential shortages in the raw materials used for their products.
• Any lapses in the quality control of the company's processes could negatively impact the business.
• During certain fiscal years, the company experienced negative cash flow.
• The company is obligated to uphold various licenses and permits essential for its business operations.

 

 

IPO GMP Today

Vaibhav Gems 'N' Jeweller IPO GMP is not yet available.

 

Conclusion 

The company has established a substantial presence in the jewellery segment in South India and boasts a robust customer base. The company has a strong financial track record and plans to expand by launching eight new stores. Investors might consider this offering as a potential investment opportunity after evaluating the various aspects.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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