Manoj Vaibhav Gems N Jewellers is into Consumer Gems & Jewellery Retail and is looking raise funds through Fresh Issue and Offer for Sale
Manoj Vaibhav Gems N Jewellers IPO: Manoj Vaibhav Gems N Jewellers Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.
Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 210 crores and an Offer for Sale up to 4,300,000 Equity Shares.. Bajaj Capital, Elara Capital have been appointed as lead merchant bankers for the proposed IPO. It has appointed Bigshare Services Private Limited as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.
Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 210 Crs and offer-for-sale (OFS) of up to 4,300,000 equity shares by Grandhi Bharata Mallika Ratna Kumari (HUF) who will offload up to 4,300,000 equity shares..
Objects of the issue:
1) Estimated capital expenditure cost for the proposed eight (8) new showrooms at a capex of Rs. 12 crores, 2) Estimated inventory cost for New Showrooms proposed to be opened - Rs. 160 crores, and 3) General corporate purposes.
Promoters of Manoj Vaibhav Gems N Jewellers are Grandhi Bharata Mallika Ratna Kumari (HUF), Grandhi Bharata Mallika Ratna Kumari and Grandhi Sai Keerthana and holds 100% stake in the company.
About Company:
Manoj Vaibhav Gems and Jewllers operating under brand name of Vaibhav Jewellers, is a regional jewellery brand in South India. Comany is led by first generation woman entrepreneur Bharata Mallika Ratna Kumari Grandhi along with her daughter Grandhi Sai Keerthana. Company is a hyperlocal jewellery retail chain with presence in the micro markets of Andhra Pradesh & Telangana with 13 showrooms (inclusive of two franchisee showrooms) across 8 towns and 2 cities. Company has a market share of ~4% of the overall Andhra Pradesh and Telangana jewellery market and ~10% of the organised market in these two states in FY23, as per the Technopak Report.
About Industry:
The Indian jewellery retail sector’s size in FY 2023 was close to USD 70billion. The sector’s organized retail share stood at approximately 32%, comprised of national and regional players, while the rest of jewellery retail continues to be dominated by the unorganised segment, comprised of over 500,000 local goldsmiths and jewellers. The jewellery retail market is expected togrow to approximately USD 124 billion by FY2027 on a ccount of the growing economy and rising disposable income, increasing consumer demand for gold, growth in gold prices and rising demand for other categories like diamonds, other precious stones and costume jewellery.
In FY 2023, the total market size of Andhra Pradesh and Telangana was USD 3.3Bn and USD 2.8Bn respectively. While the Andhra Pradesh jewellery market is expected to grow to USD 6.3Bn by FY 2027at a CAGR of ~18%, the Tela nga na market is expected to grow to USD 5.3Bn during the same period at a CAGR of ~18%. Rural market in the state of Andhra Pradesh and Telangana contributes 50-52% of the total jewellery market in FY 2023 in these two states. 60-70% of the rural demand for jewellery is driven by weddings followed by the need for investment post-harvest. Organized market contributed ~39% of the tota l jewellery market in the states of Andhra Pradesh and Telangana in FY 2023 and expected to grow to ~45% of the total market by FY 2027. The current organized market of USD 2.35Bn in Andhra Pradesh and Telangana together is expected to grow at a CAGR of 22% to USD 5.21Bn by FY 2027. Regional and Nationa l Brands have identified the potential of Andhra Pradesh and Telanga na and have a substantial share of their store network in these locations. Regional and National players have significant presence in Tier 2 and 3 cities which are the new consumption hubs and cater to the semi urban and rura l consumer (Source: Technopak Report).
Source: SEBI, BSE, NSE, DRHP, Manoj Vaibhav Gems N Jewellers, Industry Data
Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.
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