Vaibhav Jewellers makes a debut on NSE and BSE, at par with IPO price of Rs 215

The jewellery retailer’s revenue has grown consistently, along with a robust increase in bottom line

Vaibhav Jewellers made a debut on the bourses on October 3, listing at par with its issue price of Rs 215. The stock listed at Rs 215 on both the NSE and the BSE.

This listing was in line with analysts’ expectations of a muted debut, as its public offer got a muted response from investors despite its resilient financial performance.

The initial public offering issue was subscribed 2.25 times, with the quota reserved for high-net worth individuals being subscribed 5.18 times.

The response from qualified institutional buyers and retail investors was largely muted, as the portions reserved for them were subscribed just 1.06 times and 1.66 times.

The jewellery retailer’s revenue has grown consistently, along with a robust increase in bottom line. Its net profit surged at a compound annual growth rate (CAGR) of 85.81% from FY21 to FY23, reaching Rs 71.6 crore. Revenue also rose at an average growth rate of 18.92% to Rs 2,027.34 crore during the same period.

“The Andhra Pradesh-based company also boasts of a 23% return on its equity in FY23 which is attractive compared to its already listed peers,” said Dhruv Mudaraddi, Research Analyst, StoxBox.

This hyperlocal jewellery retail chain has a presence in the micro markets of Andhra Pradesh and Telangana, operating 13 showrooms. Its plans include opening eight more stores to tap into tier-2 and 3 markets, which is a promising strategy given that rural markets accounted for 50-52% of the total jewellery market in FY23, Mudaraddi added.

Courtesy: moneycontrol.com