Vaibhav Jewellers IPO sees 58% buying till day 2, retail portion booked 73%
The public issue of Manoj Vaibhav Gems N Jewellers, known as Vaibhav Jewellers, has received a favorable response from investors in the first two days of bidding on September 25. As per the data available from exchanges, investors have subscribed to approximately 58 percent of the total offer size.
Indeed, the subscription level of approximately 58 percent for the public issue of Manoj Vaibhav Gems N Jewellers, operating under the brand name Vaibhav Jewellers, indicates significant investor interest in the offering. However, it’s important to note that the subscription is not yet at 100 percent, indicating that there is still room for more investors to participate.
The final subscription percentage and the overall success of the public issue will be determined by the response from investors until the closing date of the bidding process. Whether the issue becomes oversubscribed, fully subscribed, or falls short of the target will depend on the level of interest in the remaining days of the offering.
Investor sentiment, market conditions, and various other factors can influence the final outcome of the public issue, and it will be interesting to see how it unfolds as the bidding period progresses.
The company had made available a total of 91.20 lakh equity shares as part of its public issue. As of the second day of bidding, investors have purchased 53.08 lakh equity shares. This level of subscription indicates significant investor interest in the offering, although it has not been fully subscribed yet. The final subscription percentage and the outcome of the public issue will be determined by investor response until the closing date of the bidding process.
In the public issue of Manoj Vaibhav Gems N Jewellers, known as Vaibhav Jewellers, the subscription figures have unveiled investor interest across various categories. Retail investors have demonstrated significant enthusiasm, subscribing to 73 percent of the shares reserved for them. High net-worth individuals (HNIs) have also participated actively, with a subscription rate of 57 percent for their allocated portion.
Meanwhile, qualified institutional buyers (QIBs) have subscribed to 33 percent of their designated shares. The company had set aside 50 percent of the issue size for QIBs, 15 percent for HNIs, and the remaining 35 percent for retail investors. These subscription rates provide insight into the varying levels of investor demand within the offering.
Manoj Vaibhav Gems N Jewellers, operating under the brand name Vaibhav Jewellers, is aiming to raise a total of Rs 270.20 crore through its initial public offering (IPO). Out of this amount, Rs 210 crore will be raised from the issuance of fresh shares, while the remaining Rs 60.2 crore will come from the offer-for-sale component at the upper end of the price band, which is set at Rs 204-215 per share.
In preparation for the IPO, the Andhra Pradesh-based company has successfully secured Rs 81 crore from anchor investors at the upper price band. Some of the anchor investors include Tano Investment Opportunities Fund, Nexus Global Opportunities Fund, Quantum-State Investment Fund, Neomile Growth Fund, Coeus Global Opportunities Fund, and AG Dynamic Funds. This anchor investment demonstrates strong institutional interest in the offering and provides a solid start to the IPO fundraising effort.
The company plans to allocate the funds raised from the fresh issue of shares as follows: First, the establishment of eight new showrooms, which is expected to cost Rs 172 crore, will be financed through this fresh issue. These showrooms are likely part of the company’s expansion strategy to enhance its presence in the market. The remaining funds from the fresh issue will be directed towards fulfilling general corporate purposes, which may include various operational needs and potential business growth initiatives.
It’s noteworthy that this hyperlocal jewellery retail chain, which currently operates in Andhra Pradesh and Telangana, is led by a first-generation woman entrepreneur, Bharata Mallika Ratna Kumari Grandhi, who is joined by her daughter, Grandhi Sai Keerthana. Despite being a relatively smaller player in the market with 13 showrooms in Andhra Pradesh and Telangana, the company’s expansion plans and leadership reflect its ambition and vision for growth in the competitive jewellery retail sector.
