Vaibhav Jewellers IPO opens on Friday. What GMP signals ahead of subscription?
Vaibhav Jewellers will open for subscription on September 22. The issue closes on September 26 and the anchor investors allocation will be done later today.
Ahead of the issue opening, market analysts say there is no definitive trend of GMP of the company's shares in the unlisted market.
Vaibhav Jewellers is one of the earlier entrants in the organised jewellery retail market of Andhra Pradesh and continues to focus on regional expansion into the high-growth untapped regions within the micro-markets of Andhra Pradesh and Telangana.
About 77% of its retail showrooms are in tier two and tier three cities and the rest are in Hyderabad and Visakhapatnam catering to urban consumers.
The IPO comprises a fresh issue of Rs 210 crore and an offer for sale (OFS) segment of up to 28 lakh equity shares.
The total offer size comes to about Rs 270 crore.
Under the OFS, promoter Grandhi Bharata Mallika Ratna Kumari will sell 28 lakh shares.
The company has fixed a price band of Rs 204-215 per share and investors can bid for a minimum of 69 shares in one lot and in multiples thereafter.
About 50% of the offer is set aside for qualified institutional buyers, 15% is reserved for non-institutional investors and 35% for retail investors.
For the three months ended June 2023, revenue from operations stood at Rs 508.9 crore and net profit was Rs 19.24 crore. In FY23, revenue rose nearly 20% year-on-year to Rs 2,027 crore, while profit jumped 61% to Rs 71.5 crore.
Net proceeds from the issue will be used towards capex costs for the proposed 8 new showrooms, inventory cost of new showrooms and other general corporate purposes.
Bajaj Capital and Elara Capital (India) are the book-running lead managers and Bigshare Services is the registrar to
