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The company’s Initial Public Offering (IPO), which was open for subscription between September 22 and September 26, was subscribed 2.25 times in total. The IPO received bids for 2.05 crore equity shares against the 91.20 lakh shares on offer. The retail category was subscribed 1.66 times, while the Non-Institutional Investors’ (NII) category saw a subscription of 5.18 times. The Qualified Institutional Buyers (QIB) portion was slightly over-subscribed at 1.06 times at the end of the bidding period.
The IPO, which raised ₹270.20 crore (INR100 crore = approx. USD12 million), was a book-built issue comprising a fresh issuance of shares worth ₹210 crore and an offer-for-sale of 28 lakh shares worth ₹60.2 crore by promoter Grandhi Bharata Mallika Ratna Kumari (HUF). Ahead of the IPO, Vaibhav Jewellers secured ₹81.06 crore from eight anchor investors by allocating 37,70,160 equity shares at ₹215 apiece.
The funds raised from this IPO are intended for financing eight proposed new showrooms including capital expenditure cost and inventory cost for these showrooms, as well as for general corporate purposes.
Founded in 2003, Vaibhav Jewellers is a regional jewelry brand in South India with a presence in Andhra Pradesh and Telangana. The company, which sells gold, silver, diamond jewelry, precious gemstones, and other jewelry products through its retail showrooms and website, currently operates 13 showrooms across eight towns and two cities in these two states.
The company has shown robust earnings growth in recent years. During FY21-FY23, it reported a compound annual growth rate (CAGR) of 85.81% to ₹71.6 crore in the financial year ended 2022-23. Revenue from operations also increased at a CAGR of 18.92% during the same period to ₹2,027.34 crore.
Elara Capital (India) and Bajaj Capital were the book-running lead managers to the issue. StoxBox of BP (NYSE:BP) Equities recommended a ‘subscribe’ rating for the issue based on the company’s prospects, product catalogue, stronghold in southern markets, and attractive pricing relative to its peers.
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