Vaibhav Jewelers, formerly known as Manoj Vaibhav Gems ‘N’ Jewelers, has unveiled the price band for its highly anticipated Initial Public Offering (IPO), set to commence on September 22, 2023.
Investors can acquire shares in the range of Rs 204 to Rs 215 per share. The IPO subscription window is scheduled to close on September 26, 2023.
For anchor investors, the bidding will open a day earlier, on September 21. It’s expected that anchor investors might subscribe to a substantial 60 percent of the Qualified Institutional Buyers (QIB) portion.
Vaibhav Jewelers is aiming to raise an impressive Rs 270.2 crore at the upper price band, with fresh equity shares worth Rs 210 crore to be issued in the IPO.
Additionally, promoter Grandhi Bharat Mallika Ratna Kumari (HUF) plans to sell 28 lakh shares worth Rs 60.2 crore through an offer-for-sale (OFS).
Reserved Categories for Investors
The IPO has allocated half of its offering to qualified institutional buyers, while high net worth individuals (non-institutional investors) can subscribe to 15 percent of the issue size.
The remaining 35 percent is earmarked for retail investors. Investors can bid for a minimum of 69 equity shares, with multiples of 69 shares thereafter.
Vaibhav Jewelers currently operates in Andhra Pradesh and Telangana, boasting 13 showrooms across 8 towns and 2 cities, including two franchised outlets. The company is wholly owned by its promoters.
Utilization of IPO Proceeds
The funds raised from the issuance of fresh equity shares in the IPO will primarily be directed towards establishing 8 new showrooms slated for FY 2023-24 and FY 2024-25.
Approximately Rs 172 crore is allocated for these showroom expansions. The remaining funds from the fresh issue will be allocated for general corporate purposes.
Listing Date and More
Vaibhav Jewelers’ IPO is supported by Bajaj Capital and Elara Capital (India) as merchant bankers, with BigShare Services serving as the registrar for the offer.
The company plans to finalize the basis of allotment of IPO shares in consultation with BSE by October 3, with equity shares credited to successful investors’ demat accounts by October 5.
Refunds for unsuccessful investors will be processed and deposited into their bank accounts by October 4.
The eagerly awaited listing of Vaibhav Jewelers’ equity shares on the BSE and NSE is scheduled for October 6, 2023.
Stay tuned for more updates on this exciting IPO opportunity from Vaibhav Jewelers.