Manoj Jewellers Limited, a key player in the jewellery sector, is all set to launch its Initial Public Offering (IPO) to raise ₹16.2 Crores. The company is known for its retail and wholesale business, dealing in a wide range of gold and diamond jewellery embellished with precious and semi-precious stones. The portfolio includes items such as rings, earrings, armlets, pendants, gajrahs, nose rings, bracelets, chains, necklaces, bangles, and wedding jewellery, catering to a diverse customer base.

IPO Details:

• Issue Size: The Manoj Jewellers IPO consists entirely of a fresh issue of 30.00 lakh shares, aiming to raise ₹16.2 Crores.

• Price per Share: The share price has been set at ₹54 per equity share.

• Lot Size: The lot size is 2,000 shares, meaning the minimum investment for retail investors is ₹1,08,000, while for High Net-Worth Individuals (HNIs), the minimum investment is ₹2,16,000 (2 lots or 4,000 shares).

• Subscription Period: The IPO subscription opens on May 5, 2025, and closes on May 7, 2025.

• Allotment Date: The allotment is expected to be finalized on May 8, 2025, with the shares expected to be listed on the BSE SME on or about May 12, 2025.

Financial Overview:

Manoj Jewellers has demonstrated a steady financial trajectory over the years, with revenues from operations for the fiscal years 2022, 2023, and 2024 showing significant growth. For the period ending December 31, 2024, the company's revenue stood at ₹4,297.20 Lakh, compared to ₹1,363.52 Lakh in FY 2022. EBITDA and Profit After Tax (PAT) also indicate growth, with a PAT of ₹376.66 Lakh in FY 2024, up from ₹62.36 Lakh in FY 2023.

The company’s earnings per share (EPS) for FY 2024 are ₹5.42 pre-issue and ₹3.61 post-issue. This is indicative of a moderate valuation, as the pre-issue P/E ratio stands at 9.96x, which is significantly lower than the industry P/E ratio of 26x, suggesting that the IPO is priced attractively relative to the market.

IPO Performance Metrics:

• Grey Market Premium (GMP): The GMP for the Manoj Jewellers IPO is ₹0, indicating no immediate price movement in the grey market. This suggests that there may be minimal short-term listing gains, making it less attractive for investors seeking immediate returns.

• Post-Issue P/E Ratio: The post-issue P/E ratio stands at 14.97x, still below the industry average, but slightly higher than the pre-issue ratio. This is a sign that the company’s valuation is conservative.

Objectives of the IPO:

The company plans to utilize the net proceeds from the IPO for the following purposes:

1. Repayment/Prepayment of Borrowings: ₹1,323.00 Lakh will be directed towards the repayment or prepayment of certain borrowings.

2. General Corporate Purposes: ₹167.00 Lakh will be allocated for general corporate purposes.

IPO Review & Recommendation:

Given the steady financial performance, with a revenue growth trajectory and relatively low valuation compared to industry peers, Manoj Jewellers presents itself as a stable player in the jewellery market. However, the Grey Market Premium of ₹0 signals no immediate price premium for short-term investors looking for listing gains.

The IPO's valuation, with a P/E ratio of 9.96x pre-issue, appears attractive, but the lack of significant GMP and modest growth projections suggest that the IPO may not deliver strong short-term returns. For long-term investors, the company’s consistent growth in earnings and its strong position in the jewellery sector could provide potential upside, though the IPO might be more suited to those looking for stability rather than speculative returns.

In conclusion, we recommend investors to approach the Manoj Jewellers Limited IPO with caution, particularly for listing gains, as the Grey Market Premium signals no immediate pricing upside. However, long-term investors may find value in the company's consistent financial performance and market position.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries,Infrabuild Developers, Virtual Galaxy Infotech, Accretion Pharmaceuticals, Wagons Learning.

The Closed IPOs are Srigee DLM, Manoj Jewellers.

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