Manoj Vaibhav Gems ‘N’ Jewellers, also known as Vaibhav Jewellers, has announced a price range of Rs 204-215 per share for the opening of its initial public offering the following week.

The tendering period for the offering will span three business days, from September 22 to September 26. On September 21, the anchor book, which may comprise up to 60 percent of the portion for qualified institutional buyers (QIB), will be opened for a day.

The Andhra Pradesh-based jewelry manufacturer has set aside fifty percent of the offering size for qualified institutional buyers, fifteen percent for high-net-worth individuals (non-institutional investors), and thirty-five percent for retail investors.

IPO Size

Vaibhav Jewellers intends to raise Rs 270.2 billion through a public offering at the upper price band. The offer consists of a fresh issuance of shares valued at Rs 210 crore and an offer to sell 28 lakh shares valued at Rs 60,2 crore by promoter Grandhi Bharata Mallika Ratna Kumari (HUF).

 The establishment of the proposed eight new showrooms will be financed primarily by net proceeds from a new issue, with the remaining funds used for general corporate purposes.

In eight villages and two cities, the hyperlocal jewelry retail chain with a presence in Andhra Pradesh and Telangana operates 13 showrooms, including two franchised showrooms. It is 100 percent owned by its founders.

Lot Size

Investors can offer for a minimum of 69 equity shares and in multiples of 69 shares thereafter. Retail investors can invest a minimum of Rs 14,835 for one lot (69 shares) and a maximum of Rs 1,92,855 for 897 shares in an IPO, as their investment limit cannot exceed Rs 2 lakh.

Individuals with a high net worth who are permitted to engage between Rs 2 and 10 lakh in an IPO can invest a minimum of Rs 2,07,690 for 966 shares and a maximum of Rs 9,93,945 for 4,623 shares.

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Financials

The jewellery brand led by the first-generation woman entrepreneur Bharata Mallika Ratna Kumari Grandhi and her daughter Grandhi Sai Keerthan recorded healthy earnings growth in the preceding financial years, with profit increasing at a CAGR of 85.81 percent during FY21-FY23 to Rs 71.6 crore in the financial year ended 2022-23 and revenue from operations increasing at a CAGR of 18.92 percent during the same period to Rs 2,022 crore.

EBITDA (earnings before interest, tax, depreciation, and amortization) at Rs 143 crore in FY23 increased at a CAGR of 43.42 percent between FY21 and FY23, while the margin increased from 4.85 percent in FY21 to 7.06 percent in FY23.

Allotment Date

By October 3, the jewellery retailer will finalize the basis of allotment of IPO shares in consultation with the BSE, the designated stock exchange for the issue, and by October 5, the equity shares will be transmitted to the demat accounts of eligible investors. The refunds or unblocking of funds from the ASBA account for unsuccessful investors will occur by October 4’s end.

As per the IPO schedule, Vaibhav Jewellers will list its equity shares on the BSE and NSE on October 6.

The offer’s book-running lead administrators are Bajaj Capital and Elara Capital (India). Bigshare Services is the issue’s registrar.

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