Vaibhav Jewellers, a regional jewelry brand in South India, announced on Friday that it has set the price band for its initial public offering (IPO) at Rs 204-215 per equity share. The company aims to raise about Rs 270 crore (approx. $32.5 million) from the capital markets. The IPO will open for subscription on September 22 and close on September 26, according to a statement issued by the firm.
The funds raised from the IPO will be channeled towards opening eight new showrooms, stocking inventory for these new stores, and other general corporate purposes. The company, also known as Manoj Vaibhav Gems 'N' Jewellers, has a significant presence in the micro markets of Andhra Pradesh and Telangana with 13 showrooms across eight towns and two cities. As of FY23, it held a market share of 4% of the overall jewelry market in these two states and 10% of the organized market.
The public issue comprises fresh issuance of shares worth up to Rs 210 crore and an Offer for Sale (OFS) of up to 2.8 million equity shares. The net proceeds from the fresh issue are proposed to be utilized towards financing the proposed new showrooms including capital expenditure cost and inventory cost of new showrooms; and general corporate purposes. Proceeds from the OFS will go to the selling shareholders.
For the three months ended June 30, revenue from operations of the company stood at Rs 508.90 crore and net profit was Rs 19.24 crore. In FY23 its revenue from operations was Rs 2,027.34 crore, majorly from the sale of gold jewellery.
The company has reserved 50% of equity shares in the offer for qualified institutional bidders (QIBs), while non-institutional investors will get 15% of the equity shares. The remaining 35% shares will go to the retail investors.
Bajaj Capital and Elara Capital (India) are the book-running lead managers and Bigshare Services is the Registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
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