Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO – Price, Lot size, Open date, GMP & Review

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Manoj Vaibhav Gems N Jewellers Ltd. (MVGJL) is a leading regional jewellery retail chain in South India, founded by first-generation woman entrepreneur Mrs. Bharata Mallika Ratna Kumari Grandhi and her daughter Grandhi Sai Keerthana. It has 13 showrooms (including two franchisee showrooms) in 8 towns and 2 cities across Andhra Pradesh and Telangana.

Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO will open for subscription from 22nd September 2023 to 26th September 2023.

Here are all the important details of Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO, including issue price, IPO allotment date, GMP, benefits, risks of investing in this IPO, and more.

IPO Details

The key details of Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO are as under.

IPO Size

The size of the IPO and different categories of the issue are:

Category	Details
IPO Opening Date	Friday – 22nd September 2023
IPO Closing Date	Monday – 26th September 2023
Listing	NSE, BSE
Issue Type	Book Built Issue IPO
Face Value of Shares	Rs. 10 per share
IPO Price Band	Rs. 204 – Rs. 215 per share
IPO Size	Rs. 270 crores
Offer for Sale	Rs. 60 crores
Fresh Issue	Rs. 210 crores

IPO Dates

The important dates for Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO are highlighted below:

Event	Date
Opening date	Friday – 22nd September 2023
Closing Date	Monday – 26th September 2023
Allotment date	Tuesday – 3rd October 2023
Refund Date	Wednesday – 4th October 2023
Share Credit Date	Thursday – 5th October 2023
Listing Date	Friday – 6th October 2023

IPO Lot Sizes

Investors can subscribe to Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:

Category	Details
Investments in lots	Minimum – 1 lot Maximum – 13 lots
Investment amount	Minimum – Rs. 14,835 Maximum – Rs. 1,92,855
Shares	Minimum – 69 Maximum – 897

IPO Reservation

Here’s the summary of reservation for different applicant categories in this IPO:

Category of Investor	Reservation Percentage
Retail Individual Investor	35%
QIB (Qualified Institutional Buyer)	50%
NII (Non-Institutional Bidders)	15%

Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO Objectives

This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below:

The IPO funds will be used to finance setting up of the proposed 8 new showrooms. Focus will mainly be on capital expenditure and inventory.
Funds will also be used for general corporate purposes.

Top things to know about Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO

Some of the key details about Manoj Vaibhav Gems ‘N’ Jewellers Limited are:

Manoj Vaibhav Gems ‘N’ Jewellers Limited (MVGJL) is a hyperlocal jewellery retail chain with 13 showrooms in Andhra Pradesh and Telangana. It has a market share of 4% of the overall jewellery market in these two states.
MVGJL was founded in 1994 and launched its flagship showroom V Square in 2007.
V Square is one of the largest jewelry showrooms in Visakhapatnam with 29,946 square feet of retail space and is one of India’s largest ISO-certified jewelry showrooms.
MVGJL plans to capture demand and meet the taste of the population of both states, giving them an exposure to the agri-customer base.
As of August 15, 2023, MVGJL had 895 employees.

The total market size of Andhra Pradesh and Telangana jewellery market is expected to grow from USD 3.3 Bn and USD 2.8 Bn in FY 2023 to USD 6.3 Bn and USD 5.3 Bn respectively by FY 2027 at a CAGR of 18%. Needless to say, Manoj Vaibhav Gems ‘N’ Jewellers can make the most of this growth trajectory, depending on its strategies and business model.

Manoj Vaibhav Gems ‘N’ Jewellers Limited (MVGJL) uses its “Go to Marketing Strategy” to connect with target groups through exhibitions and understand their tastes and preferences. Rural markets account for a larger share of the retail jewellery market, and the inelasticity of rural demand for gold offers significant growth potential.

To cater to the semi-urban and rural demand of Andhra Pradesh and Telangana, 77% of MVGJL’s retail showrooms are located in Tier 2 and Tier 3 cities.
The remaining 15% of showrooms are located in the Mini Metro city of Hyderabad, and 8% are in the Tier 1 city of Visakhapatnam, catering to urban consumers.

MVGJL follows a hub-and-spoke model with smaller showrooms operating around larger showrooms. This allows it to continuously offer new products to semi-urban and rural customers and capture a share of that market. The rural market in Andhra Pradesh and Telangana accounted for 50-52% of the total jewellery market in FY 2023.

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What are the products offered by Manoj Vaibhav Gems ‘N’ Jewellers?

Manoj Vaibhav Gems ‘N’ Jewellers Ltd offers five different jewellery categories:

Bridal: Detailed designs exclusively for weddings.

Daily wear: Plain and simple gold items such as bangles and rings.
Temple jewellery: Handcrafted, traditional pieces for festive wear.
Occasion wear: Special designs curated for occasions like Sangeet, Roka, etc.
Antique: Ethnic styles that can be worn on festivals and occasions.

Is Manoj Vaibhav Gems ‘N’ Jewellers Limited profitable – Know the financial performance of Manoj Vaibhav Gems ‘N’ Jewellers

Manoj Vaibhav Gems ‘N’ Jewellers Ltd’s financials are given in the table below:

Year	Assets (Rs. in cr)	Revenue (Rs. in cr)	Profit After Tax (Rs. in cr)	EPS	Total Borrowing (Rs. in cr)
Mar-2023	1,077	2,031	71	18	460
Mar-2022	899	1,697	43	11	477
Mar-2021	803	1,443	20	5	463

(Source: RHP)

What are the strengths of Manoj Vaibhav Gems ‘N’ Jewellers Limited?

Some of the key strengths of Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO that investors can take note of are:

Category	Details
Leading brand	Strong local brand presence with focus on a specific regional strategy.Company’s market strategy allows it to reach more people, develop deeper connections with customers, and maintain customer loyalty.
Early-mover benefit	Company enjoys early starter benefit in Andhra Pradesh region.
Prdouct portfolio	The company offers a variety of gemstones and jewellery with different budget ranges.

What is the risk of investing in Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO?

Here are some of the risks that investors of Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO should know:

Category	Details
Geographical concentration	Company’s showrooms are exclusively located in the states of Andhra Pradesh and Telangana. In case of any adverse developments in these regions, the business could be negatively impacted.
Legal proceedings	The company and its promoters are currently facing legal proceedings and potential litigation. For the same, there are no financial provisions towards any liabilities that may arise.
Competition	The company operates in a highly competitive retail jewellery market. In case of increased competition, the company’s financial health could be impacted.

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Who are the competitors of Manoj Vaibhav Gems ‘N’ Jewellers Limited?

Some of the major competitors of Manoj Vaibhav Gems ‘N’ Jewellers in Andhra Pradesh and Telangana are:

Joyalukkas,
Malabar Gold,
GRT Jewellers,
Kalyan Jewellers,
Tanishq, and
Bhima Jewellers.

What is the Grey Market Premium (GMP) of Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO?

As of September 21st, 2023, the grey market premium for the shares of Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO is Rs. 0 as per market observers. This indicates that the shares are not yet expected to list at any premium over the listing cap price of Rs. 215.

Is Manoj Vaibhav Gems ‘N’ Jewellers Limited IPO safe for investment?

Manoj Vaibhav Gems ‘N’ Jewellers Limited enjoys an early mover advantage in the jewellery market of Andhra and Telangana regions. Its consistent financial performance is also a positive signal about the company’s future prospects. However, since this industry is highly competitive, investors must carefully consider the company’s standing against its competitors before investing in this IPO.