The initial public offering (IPO) of south Indian jewelry brand Manoj Vaibhav Gems 'N' Jewellers Ltd achieved full subscription on Tuesday, the final day of bidding. The IPO, which opened for subscription on Friday last week, received bids for 2.05 crore equity shares against the offer of 87.97 lakh shares, according to data available on the stock exchanges.
The public issue was subscribed 2.25 times in total, with bookings 1.66 times in the retail category and 5.18 times in the Non-Institutional Investors' (NII) category. The Qualified Institutional Buyers' (QIB) portion was subscribed 1.06 times.
Manoj Vaibhav Gems is a hyperlocal jewelry retail chain with a presence in the micro markets of Andhra Pradesh and Telangana, boasting 13 showrooms across 8 towns and 2 cities. The IPO price band has been fixed at ₹204 to ₹215 per equity share, making the total IPO size 1.25 crore equity shares worth ₹270.20 crore.
Despite lukewarm sentiments in the grey market and tepid response by investors initially, BP (NYSE:BP) Equities endorsed the public issue, citing steady growth in revenue and robust profit growth of the company, which has seen a more than three-fold increase in two years.
The company's stronghold in the southern markets and a good track record were also noted as positive factors. The pricing was deemed attractive vis-à-vis its peers as it values Manoj Vaibhav Gems at 11.7x of its FY23 earnings.
The grey market premium (GMP) today is ₹12 per share, indicating that Manoj Vaibhav Gems shares are trading higher by ₹12 than their issue price in the grey market. This signals an estimated listing price of ₹227 per share on the BSE and NSE stock exchanges.
The company had previously raised ₹81.06 crore from anchor investors on September 21, ahead of the IPO opening. The announcement of share allocation is expected on September 27, while refunds may begin on September 29. The estimated listing date for Manoj Vaibhav Gems IPO is October 3.
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