Manoj Vaibhav Gems 'N' Jewellers IPO: Shining Bright in South India
Introduction:
The Manoj Vaibhav Gems 'N' Jewellers IPO has made a grand entrance into the investment scene, raising a significant sum of Rs 270.20 crores. This IPO is a combination of a fresh issue comprising 0.98 crore shares, amounting to Rs 210.00 crores, and an offer for sale of 0.28 crore shares, totaling Rs 60.20 crores. Bidding for this IPO began on September 22, 2023, and the subscription period concluded on September 26, 2023. The allotment process was completed on September 27, 2023, and shares started trading on BSE and NSE on October 3, 2023. The share price for this IPO was set in the range of ₹204 to ₹215 per share, with a minimum lot size of 69 shares, requiring a minimum investment of ₹14,835 for retail investors.
Participating Entities:
The Manoj Vaibhav Gems 'N' Jewellers IPO was managed by Bajaj Capital Limited and Elara Capital (India) Private Limited as book-running lead managers. Bigshare Services Pvt Ltd acted as the registrar for this offering.
Stock Performance:
As of October 19, 2023, the stock of Manoj Vaibhav Gems 'N' Jewellers Ltd was trading at ₹271.45, representing a marginal decrease of 0.20%. The stock had an opening price of ₹270.50, with a daily high and low of ₹276.40 and ₹269.45, respectively. The previous closing price stood at ₹272.00, with a total traded value of 1,67,583 shares.
Ownership Structure:
The shareholding of the company prior to the issue was 100.00%, and it decreased to 74.27% post-issue.
Financial Overview:
Manoj Vaibhav Gems 'N' Jewellers Ltd reported a robust financial performance. As of March 31, 2023, the company's total assets reached ₹1,077.86 crores. The company witnessed impressive revenue growth, with earnings amounting to ₹2,031.30 crores in fiscal 2023. Significantly, the company reported a profit after tax of ₹71.60 crores. The net worth of the company stood at ₹344.55 crores, with reserves and surplus totaling ₹305.47 crores. Total borrowings were reported at ₹460.00 crores.
Key Metrics:
Important financial indicators included a Price-to-Earnings (P/E) ratio of 11.74, Market Capitalization of ₹1050.22 crores, Return on Equity (ROE) of 23.19%, Return on Capital Employed (ROCE) of 17.71%, Debt/Equity ratio of 1.34, Earnings per Share (EPS) of ₹18.32, and Return on Net Worth (RoNW) of 20.78%.
Objectives of the Issue:
The Net Proceeds from the Fresh Issue were intended for:
- 1. Financing the establishment of eight new showrooms.
- Capital expenditure costs for the new showrooms. - Inventory costs for the new showrooms. - 2. General Corporate Purpose.
Expert Opinion:
Manoj Vaibhav Gems 'N' Jewellers Ltd is a prominent south-centric jewelry retailer with 13 stores in its portfolio. The company has ambitious plans to add 8 more stores to its network. By targeting customers from Tier-2 and Tier-3 regions, the company aims to sustain its growth momentum. While the issue seemed fully priced based on annualized FY24 earnings, well-informed investors may consider moderate investments for medium to long-term potential.
Subscription Status:
The Manoj Vaibhav Gems 'N' Jewellers IPO garnered significant interest from investors, achieving an overall subscription rate of 2.33 times as of September 26, 2023. Retail investors displayed strong enthusiasm with a subscription rate of 1.73 times. The issue attracted notable attention from non-institutional investors (NII) with a subscription rate of 5.40 times, especially in the "bNII" category.
Conclusion:
Manoj Vaibhav Gems 'N' Jewellers IPO provides an opportunity for investors to participate in the success story of a thriving jewelry brand. As with any investment, it's crucial to conduct comprehensive research and consider the company's growth prospects and competitive positioning. Diversifying your investment portfolio and risk management remain fundamental principles in stock market participation.
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