VAIBHAV JEWELLERS IPO OPENS FOR SUBSCRIPTION TODAY

22nd September 2023

Vaibhav Jewellers, a renowned jewellery brand in South India, based in Andhra Pradesh, is set to launch its initial public offering (IPO) for subscription today, September 22. This jewellery retail chain has a strong presence in Andhra Pradesh and Telangana, with 13 showrooms in eight towns and two cities, including two franchisee showrooms.

Company’s Background

Vaibhav Jewellers is a 100% promoters-owned company and a pioneer in the organized jewellery retail market in Andhra Pradesh. It has consistently focused on regional expansion within the micro-markets of Andhra Pradesh and Telangana, carving a niche for branded jewellery. The company’s flagship showroom, spanning over 29,946 square feet and four floors, was established in Visakhapatnam in 2007.

Financial Performance

Under the leadership of Entrepreneur Bharata Mallika Ratna Kumari Grandhi and her daughter Grandhi Sai Keerthan, Vaibhav Jewellers has shown robust earnings growth. The profit has surged with a compound annual growth rate (CAGR) of 85.81% from FY21 to FY23, reaching ₹71.6 crore in the financial year ended 2022-23. The revenue from operations also witnessed substantial growth, achieving a CAGR of 18.92% during the same period and reaching ₹2,027.34 crore.

IPO Details

IPO Opening Date: Vaibhav Jewellers IPO is open for subscription from September 22.

IPO Closing Date: The subscription period will close on Tuesday, September 26.

Price Band: The price range for Vaibhav Jewellers IPO is set between ₹204 to ₹215 per equity share, with a face value of ₹10 each.

Lot Size: Investors can bid for a minimum of 69 equity shares and in multiples of 69 shares thereafter.

Anchor Investors: The allocation to anchor investors took place on Thursday, September 21.

Offer Details: The IPO consists of a fresh issuance of shares worth ₹210 crore and an offer-for-sale of 28 lakh shares worth ₹60.2 crore by promoter Grandhi Bharata Mallika Ratna Kumari (HUF).

IPO Objectives: The company intends to utilize the fresh issue proceeds for establishing eight new showrooms, covering capital expenditure, inventory costs, and general corporate purposes.

Allotment Date and Listing Date: The basis of allotment will be finalized on Tuesday, October 3. Refunds will be initiated on Wednesday, October 4, and shares will be credited to demat accounts on Thursday, October 5. Vaibhav Jewellers shares are expected to be listed on BSE and NSE on Friday, October 6.

Lead Manager and Registrar: Bajaj Capital Limited and Elara Capital (India) Private Limited are the book-running lead managers, while Bigshare Services Private Limited is the Registrar to the offer.

Reservation: The IPO has allocated 50% of the offer size for qualified institutional buyers (QIBs), 15% for high net-worth individuals (non-institutional investors), and the remaining 35% for retail investors.

Anchor Investment

Vaibhav Jewellers successfully raised Rs 81.06 crore from eight anchor investors on September 21, with an allocation of 37,70,160 equity shares at a price of Rs 215 per share. The company plans to use the net fresh issue proceeds to establish eight new showrooms, with the remaining funds allocated for general corporate purposes.

Vaibhav Jewellers is set to mobilize Rs 270.2 crore through its IPO at the upper price band.