Vaibhav Jewellers launches IPO with an offer for sale of up to 2.8 million equity shares

According to the company, the public issue of face value of Rs. 10 per equity share comprises fresh issuance of equity shares worth up to Rs. 210 crore and an Offer for Sale (OFS) of up to 2.8 million equity shares

Vaibhav Jewellers have come out with an Initial Public Offering (IPO). The price brand for the IPO has been fixed at Rs. 204 to Rs. 215 per equity share. The IPO opened for subscription on September 22, 2023, and will close on September 26, 2023.

Investors can bid for a minimum of 69 equity shares, and in multiples of 69 equity shares thereafter. The floor price is 20.4 times the face value of the equity share and the cap price is 21.5 times the face value of the equity share.

The public issue of face value of Rs. 10 per equity share comprises fresh issuance of equity shares worth up to Rs.210 crore and an Offer for Sale (OFS) of up to 2.8 million equity shares, according to a statement issued by the company.

Vaibhav Jewellers has 13 showrooms across eight towns and two cities, and a market share of 4% of the overall Andhra Pradesh and Telangana jewellery market and 10% of the organised market in these two states in the financial year 2023.

In 2007, the company had launched its flagship showroom in Visakhapatnam that is spread across 29,946 sq. ft.

About 77% of its retail showrooms are in Tier-2 and Tier-3 cities. Each of its showrooms houses varied exquisite and large inventory designs across a wide range of products in gold, diamond, gems, platinum and silver jewellery or articles. Its sub-brand, Visesha, caters to a premium segment of gold and diamond jewellery.

For the three months ending June 30, 2023, revenue from operations stood at Rs. 508.90 crore and net profit was Rs. 19.24 crore. In FY-23, its revenue from operations was Rs. 2,027.34 crore, majorly from the sale of gold jewellery.

For FY-2023, the company’s per retail showroom average revenue stood in the range of Rs. 150 crore to Rs. 160 crore. And, EBITDA per store stood at Rs. 11.3 crore between FY21-23, the Revenue and PAT grew a CAGR of 18.92% and 85.81%. Its e-commerce sales grew from Rs. 4.16 crore in FY-19 to Rs.36.40 crore in FY-23.

Bajaj Capital Limited and Elara Capital (India) Private Limited are the book-running lead managers and Bigshare Services Private Limited is the Registrar to the Offer. The equity shares are proposed to be listed on BSE and NSE.

Courtesy: thehindu.com