Vaibhav Jewellers Files Draft Papers To Secure Funds Via IPO

Vaibhav Gems N' Jewellers Ltd, a leading regional jeweller in South India, has filed preliminary papers with SEBI to raise funds through an initial public offering.

The public issue comprises fresh issue of equity shares aggregating up to Rs 210 crore and an offer for sale of 43 lakh equity shares by promoter entity Grandhi Bharata Mallika Ratna Kumari (HUF), according to the draft red herring prospectus.

The company may also consider a further issue of equity shares aggregating up to Rs 40 crore. If such a placement is completed, the fresh issue size will be reduced.

The proceeds from the fresh issue of shares will be utilized to finance the establishment of eight new showrooms that will cost Rs 12 crore and the purchase of inventory worth Rs 160 crore over financial years 2023 and 2024, besides general corporate purposes.

Visakhapatnam-headquartered Vaibhav Jewellers offers a wide range of products in gold, diamonds, gems, platinum and silver jewellery or articles. Its sub-brand Visesha caters to a premium segment of gold and diamond jewellery.

The company was founded in 1994, and is currently being led by Bharata Mallika Ratna Kumari Grandhi along with her daughter Grandhi Sai Keerthana.

As per the Technopak report, in fiscal 2021, the company had an approximate market share of 14% of the organised market. Other key players that have presence in Andhra Pradesh and Telangana are-- Tanishq, Kalyan Jewellers, Malabar Gold Pvt Ltd, GRT Jewellers and Joyalukkas.

In Fiscal 2022, its revenue from operations stood at Rs 1,694 crore.

Bajaj Capital Ltd. and Elara Capital (India) Pvt. Ltd. are the book running lead managers to the offer. The equity shares will be listed on BSE and NSE.