This leading regional jewellery brand in South India aims to raise about Rs 270 crore through the issue, of which the fresh issue component is Rs 210 crore. The public issue with a face value of Rs 10 also includes an offer for sale (OFS) of up to 2.8 million equity shares.
The company has fixed a price band of Rs 204-215 per equity share for its initial public offer. Investors can bid for a minimum of 69 shares and in multiples thereafter. The issue closes on September 26.
Vaibhav Jewellers is one of the earlier entrants in the organised jewellery retail market of Andhra Pradesh and continues to focus on regional expansion into the high-growth untapped regions within the micro-markets of Andhra Pradesh and Telangana
77% of its retail showrooms are in tier 2 and tier 3 cities and the rest are in Hyderabad and Visakhapatnam catering to urban consumers.
For the three months ended June 2023, revenue from operations stood at Rs 508.9 crore and net profit was Rs 19.24 crore. In FY23, revenue rose nearly 20% year-on-year to Rs 2,027 crore, while profit jumped 61% to Rs 71.5 crore.
Net proceeds from the issue will be used towards capex costs for the proposed 8 new showrooms, inventory cost of new showrooms and other general corporate purposes.The offer is being made through the book-building process, wherein 50% of the issue is reserved for institutional investors, 15% for non-institutional investors and the rest 35% for retail investors.
Between FY21-23 the revenue and PAT grew at a CAGR of 18.92% and 85.81%, respectively. Its e-commerce sales rose from Rs 4.16 cr in FY19 to Rs 36.40 crore in FY23.
Bajaj Capital and Elara Capital (India) are the book-running lead managers and Bigshare Services is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The share allotment will be finalised on October 3 and the listing of shares is expected on October 6.
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