Manoj Vaibhav Gems N Jewellery Limited (MVGJL), a renowned regional jewellery brand in South India, has made its debut today in the Indian stock market, opening at par value.
The stock made its debut at Rs 215 per share, maintaining a flat opening on the BSE. Similarly, on the NSE, the stock started at Rs 215 per share, reflecting no change from its initial public offering price of Rs 215 per share.
As of the time of writing, the stock is actively trading at Rs 218 per share on the BSE, with intraday highs and lows recorded at Rs 221.90 and Rs 210, respectively. The current market capitalization of the company stands at Rs 1,065 crore.
The net proceeds generated from the Issue are intended to be allocated for specific purposes. Firstly, they will be used to finance the establishment of eight new showrooms. This includes covering the capital expenditure costs associated with these proposed showrooms, as well as addressing the inventory expenses for these locations. Additionally, the funds will be utilized for general corporate purposes.
MVGJL, known as Vaibhav Jewellers, is a prominent regional jewellery brand operating in South India. They specialize in offering a diverse range of jewellery products, including gold, silver, and diamond jewellery, as well as precious gemstones, through their retail showrooms and online platforms.
Vaibhav Jewellers serves a wide spectrum of customers across the micro markets of Andhra Pradesh and Telangana, encompassing both rural and urban areas. Their brand essence revolves around ‘Relationships, by Design,’ emphasizing their commitment to delivering exquisite designs, top-notch quality, transparency, and exceptional customer service.
With a total of 13 showrooms, which includes two franchisee outlets, it has a strong presence across eight towns and two cities in Andhra Pradesh and Telangana.
On September 26, 2023, the final day of the IPO window, the IPO recorded a subscription rate of 2.33 times. The public issue garnered a moderate response, with the retail category being subscribed 1.73 times, the QIB category achieving a subscription rate of 1.08 times, and the NII category reaching a subscription rate of 5.40 times.
The company attracted Rs 81.06 crore from various anchor investors by allocating 37.70 lakh equity shares at Rs 215 per share. The complete lock-in period for these anchor investors ends on February 7, 2024.
The IPO price range was set between Rs 204 and Rs 215 per share, with a face value of Rs 10 each and a lot size of 69 shares. The total size of the company’s IPO was Rs 270.20 crore, and the final share issue price was fixed at Rs 215 each.
|Particulars||FY21 (Rs Cr)||FY22 (Rs Cr)||FY23 (Rs Cr)|
|Net Profit / (Loss)||20.74||43.68||71.60|
The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Given the current market conditions, where broader indices have retraced from their all-time highs, some investors who applied for listing gains may be disappointed. The stock had a flat listing today. Considering the subscription data, it did not attract significant interest from various market participants during the IPO. Hence, it can be considered whether to book profits at the current market price or during today’s final market closing.
On the other hand, looking at the strong financials, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.