Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO is live. Should you Invest?
In this article
- IPO details
- Issue details
- Offer Breakup
- IPO Strengths
- Key Risks
- Manoj Vaibhav Gems ‘N’ Jewellers Limited Financials
📃About Manoj Vaibhav Gems ‘N’ Jewellers
Incorporated in 2003, Manoj Vaibhav Gems ‘N’ Jewellers Limited, also known as Vaibhav Jewellers, is a regional jewellery brand in South India.
The company offers gold, silver, and diamond jewellery, precious gemstones, and other jewellery products through retail showrooms and its website.
VaibhavJewellers caters to all economic segments of the micro markets of Andhra Pradesh and Telangana through their retail showrooms and website with a focus on rural and urban markets. The company has positioned itself as a retailer focussed on ‘Relationships, by Design’, which focuses on offering designs, high quality, transparency, and customer service.
The company has 13 showrooms (including two franchisee showrooms) across 8 towns and 2 cities in Andhra Pradesh & Telangana.
💰Issue Details of Manoj Vaibhav Gems ‘N’ Jewellers
- IPO open from 22nd Sep 2023 – 26th Sep 2023
- Face value: ₹10 per equity share
- Price band: ₹204 to ₹215 per share
- Market lot: 66 shares
- Minimum Investment: ₹14,835
- Listing on: BSE and NSE
- Offer for sale: Approx ₹270.20 Cr (Fresh Issue: ₹210 Cr + OFS ₹60.20 Cr)
- Registrar: Bigshare Services Pvt Ltd
🪙Total Issue Price
🪚Offer Breakup
🔭IPO Object
The company intends to utilise the net proceeds from the issue towards the funding of the following objects:
To Finance the Establishment of the proposed 8 new showrooms, i.e.
- Capital expenditure cost for the proposed eight (8) new showrooms,
- Inventory cost for the proposed eight (8) new showrooms,
- General corporate purposes.
⛓️IPO Strength
Some of the qualitative factors and strengths that form the basis for computing the Offer Price are:
- They are a leading home-grown regional brand built on hyperlocal retail strategy.
- They have fortified their business initially with a focus on catering for customers in both rural and urban areas, and they have been slowly moving towards capturing and expanding the brand in Tier II and Tier III cities.
- Their Go-to-market strategy is their crucial business enabler, thereby providing broader market reach and deep customer connections and enabling them to build a loyal customer base.
- They have an early mover advantage in the state of Andhra Pradesh.
- They, through their operating ethos of ‘Relationships, by Design’, offer diverse product designs to customers across budget brackets at varied price ranges.
🧨IPO Risk
- The costs of the raw materials they use in their manufacturing process are volatile due to factors beyond their control. Increases or fluctuations in raw material prices may adversely affect their business, financial condition, results of operations and cash flows.
- Any shortages, delays or disruption in the supply of the raw materials they use in their manufacturing process due to factors beyond their control may adversely affect their business, financial condition, results of operations and cash flows.
- Their inability to maintain the stability of their distribution network across their distribution channels and attract additional distributors, dealers and retailers may adversely affect their results of operations and financial condition.
- Their inability to handle risks associated with their export sales could negatively affect their sales to customers in foreign countries and their operations and assets in such countries.
- They depend highly on their Key Managerial Personnel and Senior Management Personnel for their business. The loss of or their inability to attract or retain such persons could adversely affect their business performance.
💸Financial Data
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
| 31-Mar-21 | ₹803.10 | ₹1443.18 | ₹20.74 |
| 31-Mar-22 | ₹899.53 | ₹1697.70 | ₹43.68 |
| 31-Mar-23 | ₹1077.86 | ₹2031.30 | ₹71.60 |
PEER COMPANIES
- Titan Company Ltd
- ThangamayilJewellery
- KalyanJewellers India Ltd
📬Also Read: A Simple Guide: Opening a Demat Account for Minors in Bharat
