Manoj Vaibhav IPO: Bidding ends today. GMP, subscription status, apply or not?

Manoj Vaibhav Gems IPO: The initial public offering (IPO) of Manoj Vaibhav Gems ‘N’ Jewellers Limited opened for subscription on 22md September 2023 i.e. on Friday last week. The three day subscrion of the main board issue is ending today and hence investors have just one day in hand to apply for the book build issue. 

The public issue of the hyperlocal south Indian jewellery brand is available at a price band of 204 to 215 per equity share. According to stock market observers, shares of Manoj Vaibhav Gems ‘N’ Jewellers Limited are available at a premium of 12 in grey market today. 

After two days of bidding, the public issue is yet to get fully subscribed as Manoj Vaibhav Gems IPO subscription status suggests that the issue has been subscribed 0.58 times in two days of bidding.

Manoj Vaibhav Gems IPO GMP today

As per the market observers, Manoj Vaibhav Gems IPO grey market premium (GMP) today is 12, which is steady for the last two days. They said that tepid response by investors and cautious trend on Dalal Street could the possible reason for such lukework grey market sentiments. However, they said that issue size is small and we can expect strong spike in subscription status as people generally come strongly on the last date of subscription date.

After two days of bidding, the public issue has been subscribed 0.58 times. As per the information available on BSE website, the public issue has been subscribed 0.58 times whereas its retail portion has been subscribed 0.73 times. In NII category, the book build issue has been subscribed 0.57 times in NII category while it has been subscribed 0.33 times in QIB category. So, the issue has received tepid response from all kinds of investors.

Despite lukewarm sentiments in grey market and tepid response by investors, BP Equities has gioven ‘subscribe’ tag to the public issue citing, “The total jewellery market in Andhra Pradesh and Telangana is expected to grow at a CAGR of ~18% during FY2023-27 period to reach Rs. 96,500 crores by FY27. MVGJL has positioned itself well to capture a good chunk of this growth by catering to all economic segments and micro markets in Andhra Pradesh and Telangana through branded showrooms with a strong focus on the rural market and a dedicated urban focus. The company has displayed steady growth in revenue and even more robust profit growth which is up more than three-fold in two years. MVGJL boasts of a 23% return on its equity in FY23 which is attractive compared to its peers. They plan to open eight new stores to target more Tier 2 and Tier 3 markets which augurs well as rural markets contributed 50-52% of the total jewellery market in FY23.”

“Based on the prospects of the sector, the company’s product catalogue, its stronghold in the southern markets and a good track record, the pricing looks attractive vis-à-vis its peers as it values MVGJL at 11.7x of its FY23 earnings. We, therefore, recommend a SUBSCRIBE rating to the issue,” the brokerage said.

On whether one should apply for the public issue or not, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “The public issue is small in size and it has presence in south India, especially in Andhra Pradesh and Telangana. So, it is more a hyperlocal gems and jewellery company. One can apply for the IPO for listing gain only.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 26 Sep 2023, 09:20 AM IST

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