Vaibhav Jewellers Sets IPO Price Band, Aims to Raise INR 270 Crore for Expansion

  Vaibhav Jewellers, a well-known jewelry brand in South India, is all set to make its debut in the stock market with an initial public offering (IPO). The company has fixed the price band for its IPO at Rs 204-215 per equity share, with the aim of raising approximately Rs 270 crore from the capital markets. This IPO is scheduled to open for subscription on September 22 and will close on September 26.

The primary purpose behind this fundraising endeavor is to support Vaibhav Jewellers' expansion plans. The company intends to utilize the funds raised to open eight new showrooms and manage inventory for these new stores. Additionally, the funds will also be allocated for general corporate purposes.

Vaibhav Jewellers has established its presence in the micro markets of Andhra Pradesh and Telangana, with a total of 13 showrooms spanning across eight towns and two cities. In the fiscal year 2023, the company claimed a market share of 4 percent in the overall jewelry market within Andhra Pradesh and Telangana. Moreover, it held a substantial 10 percent market share in the organized jewelry market within these two states.

The IPO consists of two components: fresh issuance of shares worth up to Rs 210 crore and an Offer for Sale (OFS) of up to 2.8 million equity shares. The face value of each equity share is Rs 10. During the first quarter ended June 30, the company reported a revenue from operations of Rs 508.90 crore, with a net profit of Rs 19.24 crore. In the full fiscal year 2023, the majority of its revenue, which amounted to Rs 2,027.34 crore, was generated from the sale of gold jewelry.

Bajaj Capital and Elara Capital (India) have been appointed as the book-running lead managers for this IPO, while Bigshare Services will serve as the Registrar to the offer. After the IPO, the equity shares are planned to be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

Vaibhav Jewellers' IPO presents an opportunity for investors to participate in the growth story of a reputable jewelry brand in South India as it expands its footprint and strengthens its market presence.

In summary, Vaibhav Jewellers is gearing up for its IPO to raise funds for expansion, with plans to open eight new showrooms and maintain inventory. This move reflects the company's growth ambitions and its commitment to serving the jewelry market in South India.