Manoj Vaibhav Gems N Jewellers to raise Fresh Issue aggregating up to Rs 210 crores and an Offer for Sale up to 4,300,000 Equity Shares through public issue IPO
Company is promoted by Grandhi Bharata Mallika Ratna Kumari (HUF), Grandhi Bharata Mallika Ratna Kumari and Grandhi Sai Keerthana. Pre-Offer Promoter and Promoter group stake in the company is 100.%.
Manoj Vaibhav Gems N Jewellers Limited has filed Red Herring Prospectus (RHP) for proposed initial public offer (IPO). Total issue size is INR 270 Crores calculated on upper price band (face value of INR 10 per share) via initial public offering.
Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 210 crores and an Offer for Sale up to 4,300,000 Equity Shares.. Bajaj Capital, Elara Capital have been appointed as lead merchant bankers for the proposed IPO. It has appointed Bigshare Services Private Limited as Registrar and Share transfer Agent.
Details about upcoming IPO: As per the details available in RHP, Price band is Rs 204 to Rs 215 with lot size of 69 shares and in multiples thereof. Objects of the issue is 1) Estimated capital expenditure cost for the proposed eight (8) new showrooms at a capex of Rs. 12 crores, 2) Estimated inventory cost for New Showrooms proposed to be opened - Rs. 160 crores, and 3) General corporate purposes.
IPO Dates:
IPO will open on September 22, 2023 and close on September 22, 2023. Tentative date of listing on stock exchanges is October 06, 2023
About Industry: The Indian jewellery retail sector’s size in FY 2023 was close to USD 70billion. The sector’s organized retail share stood at approximately 32%, comprised of national and regional players, while the rest of jewellery retail continues to be dominated by the unorganised segment, comprised of over 500,000 local goldsmiths and jewellers. The jewellery retail market is expected togrow to approximately USD 124 billion by FY2027 on a ccount of the growing economy and rising disposable income, increasing consumer demand for gold, growth in gold prices and rising demand for other categories like diamonds, other precious stones and costume jewellery. In FY 2023, the total market size of Andhra Pradesh and Telangana was USD 3.3Bn and USD 2.8Bn respectively. While the Andhra Pradesh jewellery market is expected to grow to USD 6.3Bn by FY 2027at a CAGR of ~18%, the Tela nga na market is expected to grow to USD 5.3Bn 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 tota l jewellery market in the states of Andhra Pradesh and Telangana in FY 2023 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 5.21Bn by FY 2027. Regional and Nationa l Brands have identified the potential of Andhra Pradesh and Telanga na and have a substantial share of their store network in these locations. Regional and National players have significant presence in Tier 2 and 3 cities which are the new consumption hubs and cater to the semi urban and rura l consumer (Source: Technopak Report).
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