Manoj Vaibhav Gems 'N' Jewellers IPO booked over 2 times; NIIs lead bidding process

The Rs 270.20 crore IPO of Manoj Vaibhav Gems 'N' Jewellers sailed through during the third and final day of the bidding process. The issue had ended the first day of bidding with 14 per cent subscription while it was overall booked 61 per cent at the end of day two.

Manoj Vaibhav Gems 'N' Jewellers, also known as Vaibhav Jewellers, is selling its shares in the price band of Rs 204-215 per share with a lot size of 69 equity shares and its multiples thereafter. Of the block, Rs 210 crore constitute the sale of fresh equity shares, while remaining 60.20 crore shall be raised by offer-for sale (OFS).

According to the data, the investors made bids for 1,93,35,525 equity shares, or 2.12 times, compared to the 91,20,664 equity shares offered for the subscription by 3.30 pm on Tuesday, September 26. The bidding for the issue had begun on Friday, September 22.

The allocation for non-institutional investors was booked at 4.95 per cent, while the portion for retail investors saw a subscription of 1.52 times. However, the portion reserved for qualified institutional bidders (QIBs) attracted bids for 1.03 times as of the same time.

Incorporated in 2003, Manoj Vaibhav Gems 'N' Jewellers, is a South India-based regional jewelry brand. It offers gold, silver, and diamond jewelry; precious gemstones; and other jewelry products. It sells its product range through its retail showrooms in micro markets of Telangana and Andhra Pradesh and along with its website.
 
Manoj Vaibhav Gems 'N' Jewellers, raised Rs 81.06 crore from eight anchor investors. It allocated 37,70,160 equity shares at Rs 215 apiece. Bajaj Capital and Elara Capital (India) are the lead managers to the issue, while Bigshare Services is the registrar for this IPO.

Brokerage firms have a mixed view on the issue. The financial performance of the company has been mixed, with growing revenue but declining profit. The company faces certain regulatory and operational risks due to the nature of its business. It is also exposed to service-related claims and losses. The issue is priced significantly higher than its listed peers, said Swastika Investmart with an 'avoid' tag.

There is no comparable company having business operations similar to UDS, however, above peers are considered just to benchmark the valuations. At higher price band, UDS is demanding a P/E multiple of 57.8 times, which is at significant premium to peer average, said Choice Broking with a 'subscribe with caution' tag.

"The domestic IFM market is highly competitive and companies in the sector are operating at wafer-thin margins. UDS holds the second largest position in the domestic IFM market. Additionally, they have ventured into the BSS segment. The company's top-line revenue has been increasing at a steady pace; However, the profit margin has been fluctuating," it added.


Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also read: Tata Consumer, BoB, Delta Corp, Titan & others: Here's what Sudeep Shah of SBI Securities says on these stocks

Also read: Hot stocks on September 26, 2023: Cochin Shipyard, Apar Industries, IFCI, Delta Corp, and more