Corporate Feature     

Published: September 15, 2023
Updated: September 15, 2023

Manoj Vaibhav Gems ‘N’ Jewellers Ltd

Leading player in South India gem scene: All set for its IPO launch on Sept. 22

Set to launch its IPO, Manoj Vaibhav Gems ‘N’ Jewellers Limited, a leading regional jewellery brand in South India with a presence in the micro markets of Andhra Pradesh and Telangana, has 13 showrooms across eight towns and two cities and a marketshare of ~4% of the overall Andhra Pradesh and Telangana jewellery market and ~10% of the organized market in these two states in FY2023.

It has fixed the price band at Rs 204-215 per equity share for the IPO, which will open on September 22 and close on September 26. Investors can bid for a minimum of 69 equity shares and in multiples of 69 equity shares thereafter.

The public issue of a face value of Rs 10 per equity share comprises fresh issuance of equity shares worth up to Rs 210 crore and an Offer for Sale (OFS) of up to 2.8 million equity shares.

The jewellery brand is one of the earlier entrants in the organised jewellery retail market of Andhra Pradesh and continues to focus on regional expansion into the high-growth untapped regions within the micro-markets of Andhra Pradesh and Telangana, thereby creating a market for branded jewellery in the area of operations. In 2007, it launched its flagship showroom in Visakhapatnam, which is spread across 29,946 sq ft and has four different floors of shopping experience.

IPO at a glance

Price band of Rs 204-215 per equity share bearing a face value of Rs 10 each.

Bid/Offer opening date – Friday, September 22, 2023. Bid/Offer closing date – Tuesday, September 26, 2023.

RETAIL NETWORK

Around 77% of its retail showrooms are in Tier 2 and Tier 3 cities and the rest are in Hyderabad and Visakhapatnam, catering to urban consumers. Each of its showrooms has a varied, exquisite and large inventory of designs across a wide range of products in gold, diamonds, gems, platinum and silver. Its sub-brand Visesha caters to a premium segment of gold and diamond jewellery.

For the three months ended June 30, 2023, revenue from operations stood at Rs 508.90 crore and net profit was Rs 19.24 crore. In FY 23, its revenue from operations was Rs 2,027.34 crore, majorly from the sale of gold jewellery. In 2005, this figure stood at Rs 50.9 cr. The jewellery brands per retail showroom average revenue and EBITDA metrics for fiscal 2023 stood at Rs 155.95 crore and Rs 11.00 crore respectively. Between FY21 and FY23, revenue and PAT grew at a CAGR of 18.92% and 85.81%. Its e-commerce sales grew from Rs 4.16 crore in FY 19 to Rs 36.40 crore in FY 23.

Bajaj Capital Limited and Elara Capital (India) Private Limited are the book-running lead managers and Bigshare Services Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.