Manoj Vaibhav Gems IPO enters day two with subdued response

The ₹270.20-crore initial public offering (IPO) of Manoj Vaibhav Gems ‘N' Jewellers Limited entered its second day on Monday, with a lukewarm response from investors. The IPO, which opened for public subscription on September 22, has so far been subscribed just 14 per cent, receiving bids for 13,13,415 shares against the 91,20,664 shares on offer.

On the first day of subscription (Friday), the Andhra Pradesh-based jewellery firm received bids for as many as 12.32 lakh shares, translating to an overall subscription of 14 per cent, according to provisional exchange data. The category for retail individual investors was subscribed 26 per cent while the portion for non-institutional investors received a mere 7 per cent subscription.

Ahead of the IPO launch on September 21, the company raised ₹81.06 crore from eight anchor investors by deciding to allot 37.70 lakh at ₹215 per share. Quantum-State Investment Fund, Tano Investment Opportunities Fund, Nexus Global Opportunities Fund, Coeus Global Opportunities Fund, Neomile Growth Fund, AG Dynamic Funds, Chhatisgarh Investments and Eminence Global Fund are the investors in the anchor book.

The South Indian jeweller has fixed a price band at ₹204-215. The IPO consists of a fresh issue worth ₹201 crore and an offer for sale for ₹60.20 crore. Retail investors can subscribe up to 35 per cent of the IPO, while the company has reserved 50 per cent of equity shares to qualified institutional bidders (QIBs) and 15 per cent to non-institutional investors.

The company plans to use the net fresh issue proceeds for the establishment of its proposed eight new showrooms and general corporate purposes. Currently, Manoj Vaibhav Gems operates 13 showrooms across the states of Telangana and Andhra Pradesh.

Bajaj Capital and Elara Capital (India) are the book running lead managers to the issue. The shares of the company will be listed on both BSE and NSE. The IPO allotment is expected to take place on October 3, with shares listing on NSE and BSE on October 6.

According to market observers, Manoj Vaibhav Gems N Jewellers Ltd is currently trading ₹18 higher in the grey market, indicating investors’ readiness to pay more than the issue price. This translates to an expected listing gain of about 8.37 per cent from the public issue.

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