Manoj Vaibhav Gems aka Vaibhav Jewellers IPO entails to raise Rs. 270 cr. and comprises a fresh issue of ₹210.00 Cr and an offer for sale of ₹60.20 Cr. shares. Manoj Vaibhav Gems ‘N’ Jewellers Limited also called Vaibhav Jewellers, is a leading regional jewellery brand in South India (Andhra and Telengana) and is led by a first generation woman entrepreneur Mrs. Bharata Mallika Ratna Kumari Grandhi along with her daughter.
IPO opens
Sep 22, 2023
IPO Closes
Sep 26, 2023
IPO Size (Rs.)
₹270.20 Cr
IPO Size (shares)
12,567,442 shares
Breakup
Fresh issue ₹210.00 Cr+ OFS ₹60.20 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹204 to ₹215
Minimum Lot
69 Shares
Listing At
NSE , BSE
Anchor & QIB Quota
50%
NII Quota
15%
Retail Quota
35%
Lead Manager
Bajaj Capital Limited, Elara Capital
Registrar
Bigshare
About Vaibhav Jewellers IPO:
Manoj Vaibhav Gems ‘N’ Jewellers Limited (Vaibhav Jewellers), is a leading regional jewellery brand in South India led by a first generation woman entrepreneur Mrs. Bharata Mallika Ratna Kumari Grandhi along with her daughter Grandhi Sai Keerthana.
It 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. It
In 2007, it launched V Square, itsr flagship showroom, which is one of the largest in Visakhapatnam, Andhra Pradesh with 29,946 sq.ft jewellery retail space and this store contributes more than 50% of its revenues.
It manufactures products through our network of job workers and procure raw materials from Banks/Authorised Dealers
Financials: Vaibhav Jewellers IPO
Particulars / Rs. Cr.
June 30, 2023
2023
2022
2021
Revenue from Operations
508.90
2,027.34
1,693.92
1,433.57
Operating Profit
35.328
134.49
96.264
71.987
Operating Profit Margin
6.94%
6.63%
5.68%
5.02%
Profit / (Loss) after tax
19.24
71.596
43.679
20.737
Profit/(Loss) Margin
3.78%
3.53%
2.58%
1.45%
Equity Share capital
39.08
39.08
9.77
9.77
Net Worth
363.65
344.55
272.86
228.99
Earnings per share
4.92
18.32
11.18
5.31
Net asset value
93.05
88.17
69.82
58.59
Total Borrowing
460.39
460.00
477.73
463.43
Post issue Share Capital
49
FV
10.0
IPO price
215.0
EPS Fy23
14.7
PE Fy23
14.7
EPS FY 24 (annualized)
15.8
PE FY24 (annualized)
13.6
Market cap in Lacs
1,050.3
Market Cap/sales
0.5
Anchor: Vaibhav Jewellers
Vaibhav Jewellers raised Rs 81.06 crore from eight anchor investors including Quantum-State Investment Fund, Tano Investment Opportunities Fund, Nexus Global Opportunities Fund, Coeus Global Opportunities Fund, Neomile Growth Fund, AG Dynamic Funds, Chhatisgarh Investments and Eminence Global Fund investors by allocating 37,70,160 equity shares at Rs 215 per share.
Vaibhav Jewellers IPO: Salient Points
Company is a regional player with reasonable growth potential.
The company has shown consistent growth in sales from 1433 Cr in Mar-21 to 2027 Cr in Mar-23. Profit margins have improved from 1.44% to 3.52% during the same period, indicating better operational efficiency.
In FY 2023, the total market size of Andhra Pradesh and Telangana was USD 3.3 Bn and USD 2.8 Bn respectively. While the Andhra Pradesh jewellery market is expected to grow to USD 6.3 Bn by FY 2027 at a CAGR of ~18%, the Telangana market is expected to grow to USD 5.3 Bn 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 total jewellery market in the states of Andhra Pradesh and Telangana in FY 202 3 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 5.21 Bn by FY 2027.
It has a market share of ~4% of the overall Andhra Pradesh and Telangana jewellery market and ~10% of the organized market in these two states in FY2023.
Peers on broad parameters
Companies
FV
CMP
Sales (₹ in Cr.)
PAT (₹ in Cr.)
NPM
P/E Ratio
Mcap (cr)
Mcap/sales
Vaibhav Jewellers
10
215
2027
71.6
3.5%
14.7
1050
0.52
TBZ
10
110
2,394.00
40.00
1.7%
14.9
731
0.31
D. P. Abhushan
10
528
1,971.00
45
2.3%
24.5
1,175
0.60
Thangamayil
10
1,214
3,153
80
2.5%
27.8
3,321
1.05
Kalyan Jewellers
10
204
14,071
432
3.1%
43
21,048
1.50
Senco Gold
10
525
4,077
158
3.9%
25.7
4,075
1.00
Peers: ((In ₹ million ): operational parameters
Financial Parameters (FY 2022-23)
Manoj Vaibhav
Titan
Thangamayil
Kalyan Jewellers
Tribhovandas
Revenue from Operations
20,273.44
4,05,750.00
31,525.50
1,40,714.47
23,936.26
Total Income
20,313.03
4,08,830.00
31,559.00
1,41,093.38
23,986.01
EBITDA
1,430.55
48,800.00
1,529.00
10,807.80
1,163.10
EBITDA Margin
7.06
12.03
4.85
7.68
4.86
PAT
715.96
32,740.00
7,97.40
4,319.32
401.90
PAT Margin (%)
3.53
8.07
2.53
3.07
1.68
Operating Cash Flow
692.00
13,700.00
104.40
10,133.71
931.69
Net debt
4,564.48
66,910.00
4,885.20
34,751.29
6,461.00
Debt/Equity ratio
1.34
0.63
1.41
0.97
0.87
ROCE (in %)
17.71
27.07
15.64
14.29
10.03
Net Worth
3,445.50
118510.00
3887.90
36347.11
5604.08
Return on Equity (in %)
23.19
30.95
22.37
12.76
7.39
Vaibhav Jewellers IPO is coming at a PE ratio of 14-15x(fy23 earnings) and 14x (Fy24 annualized) . revenues and profits have increased steadily.
Another company from the sector , the recently listed, Senco gave good returns to investors. However it is a bigger player than this Company.
I may apply in Vaibhav Jewellers IPO subject to good to moderate response on Day3. I find it OK but same must reflect in the subscription numbers atleast on Day 3.
Overcrowding of issues could affect listing gains.
GMP as reported on social media has been around Rs.10-15.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
