The IPO of Vaibhav Jewellers was fully subscribed on the last day of the bidding process. The overall subscription stood at 2.25 times at close. The issue was priced in the range of Rs 204-215.
The IPO comprised fresh issue of Rs 210 crore and an offer for sale (OFS) segment of up to 28 lakh equity shares. The company has raised about Rs 270 crore through the public offer.
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 company 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.
About 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.
The Indian jewellery retail sector’s size in FY23 was close to $70 billion. The sector’s organized retail share stood at approximately 32%, comprised of national and regional players, while the rest of jewellery retail continues to be dominated by 23 the unorganised segment, comprising over 500,000 local goldsmiths and jewellers. The jewellery retail market is expected to grow to approximately $124 billion by FY27.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.
Bajaj Capital and Elara Capital (India) acted as the book-running lead managers and Bigshare Services was the registrar to the offer.
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