Jewellery to Investments: 

Manoj Vaibhav Gems N Jewellers Limited IPO Insights

Manoj Vaibhav Gems N Jewellers branded as Vaibhav Jewellers, a known retail regional micro market jewellery brand with its presence in Andhra Pradesh and Telangana with 11 showrooms and 2 franchisee showrooms. The company has an organized jewellery market share of around 10% in both the states. They hold a flagship showroom in Visakhapatnam, Andhra Pradesh famous for being one of India’s largest ISO certified jewellery showroom.

The company’s main objective is to expand their strong presence in new locations of Andhra Pradesh and Telangana. You can visit : vaibhavjewellers.com to know more about their business. 

Vaibhav Jewellers – The Journey

Vaibhav Jewellers opened their first retail showroom as a proprietorship concern in 1994 in Visakhapatnam, Andhra Pradesh. In 2007, they launched their flagship showroom V Square, as one of the largest ISO certified jewellery showrooms. With their presence of 28 years, they are holding a strong rural market base and a dedicated urban base also. They focus on ‘Relationships, by Design’.

Jewellery Sector 

Indian society has traditionally been investing in jewellery as an asset class which guards them against asset erosion and the liquid nature of assets provides access to quick cash in case of emergency. This evergreen sector always finds its demand in the midst of economic growth as well as economic recession.

Gold Consumption in India

India has the world’s second largest market for gold.

 

Growth Drivers for Indian Retail Jewellery Industry

• India has a strong cultural affinity towards gold as it serves a dual purpose of both consumption and investment.

• With proper norms like mandatory hallmarking and know-your-customer norms, the organized retail jewellery market is creating a strong base for financially stable market players.

• As the disposable income is increasing, buying power also increases, this will attract Indian households to purchase gold jewellery.

• The key drivers for growth of the retail jewellery market are weddings, festivals and harvesting.

Manoj Vaibhav Gems N Jewellers Limited IPO (Initial Public Offering) Details

Goals & Objectives

The Company proposes to utilise the Net Proceeds towards funding the following objects are estimated:

The company is intending to open these showrooms in Tier 2 & Tier 3 cities of Andhra Pradesh and Telangana.

IPO Calendar

IPO Price Details

Investment Potential

Qualitative Factors

• Well established regional present

• Well customer focus in rural and urban areas

• Operating ethos of “Relationship, by Design”

• Deep customer connects

• Loyal customer base
  

Quantitative Factors 

 

 

 

Risk Factors

Equity share investments are highly risky .Investors should carefully consider all the information in this Red Herring Prospectus, including the risks and uncertainties described below, before making an investment in the Equity Shares

Internal Risks for the company

• The profitability of new showrooms in new markets will directly affect the business prospects, financial condition and operations of the company.

• The availability and cost of precious metal will have a direct effect on profitability of the company.

• Any change in political scenario, economic condition, natural calamity Andhra Pradesh and Telangana may have a negative impact on the company’s business, sales and results of operations.

• The Objects of the offer details are from management estimates and may be subject to change.

• The Company’s partial proceeds from the Offer will be received by the Promoter (Grandhi Bharata Mallika Ratna Kumari (HUF)) for selling part of her share.

• The company has commissioned Technopak Advisors Private Limited for the industry analysis report.

• The Company had faced negative cash flow during certain fiscal years; details of which are given below. Sustained negative cash flow could adversely impact the companies business, financial condition and results of operations.

External Risks

• Political changes

• Global and Indian economic condition

• Natural disaster

• Law & Tax regulations

• Foreign Investment Restrictions

Frequently Asked Questions

What is the Offer Open and Close Date for the IPO?

The Bid opens on 22nd September,2023 (Friday) and closes on 26th September,2023 (Tuesday by 5.00pm).

What is the Price range for the offer?

The price range is  Rs.204 -Rs.215

Has the company faced any negative cash flows?

Yes, the company has faced negative cash flows for operations in 2021, for investment in 2023 and for financing in 2022 & 2023.

How to apply for the IPO?

The investor can apply for the IPO through an ORCA trading app. IPO applications should follow ASBA process.

Who can apply for the IPO?

Qualified Institutional Buyers like Foreign Institutional Investors, Indian Financial Institutions, Mutual Funds etc..Non institutional investors like corporates, NRI, HUFs, and Individual Investors.

 

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Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.