Vaibhav Jewellers, piloted by the entrepreneur Bharata Mallika Ratna Kumari Grandhi, is readying for its bourse debut on Tuesday, October 3, 2023. The company's initial public offering (IPO) was oversubscribed by 2.25 times, with the final issue price fixed at ₹215 per share. Although a subdued debut is expected due to lower IPO subscription numbers, InvestingPro data reveals Vaibhav Jewellers' shares are currently trading at a premium of 3-5% over the issue price in the grey market.
As per InvestingPro's real-time metrics, Vaibhav Jewellers is a prominent player in the Textiles, Apparel & Luxury Goods industry. The company, being the sixth one to list under the T+3 timeline, has its stock valued at 11.7 times its FY23 earnings. It's worth noting that the company holds more cash than debt on its balance sheet, a positive sign for potential investors.
Vaibhav Jewellers has demonstrated robust financial performance, boasting a revenue growth rate of 18.92% and a return on equity of 23%. The firm successfully raised ₹270.20 crore (INR100 crore = approx. USD12 million) through its IPO, which included an offer-for-sale (OFS) of ₹60.20 crore. The company's impressive gross profit margins and the fact that its cash flows can sufficiently cover interest payments, as indicated by InvestingPro Tips, further strengthen its financial position.
The jewelry retailer's growth strategy includes the inauguration of eight additional stores, primarily focusing on Tier-2 and Tier-3 markets. The net proceeds from the fresh issue will be used to establish these new showrooms. The company had set an IPO price band of ₹204-215 per share.
For more insights like these, consider checking out InvestingPro. It offers additional tips that could help make informed investment decisions. For instance, InvestingPro lists a total of 17 useful tips for Vaibhav Jewellers, including the company's trading trends and valuation multiples.
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