Manoj Jewellers Limited, a key player in the jewellery retail and wholesale business, is offering its Initial Public Offering (IPO) with a fresh issue of ₹16.2 Crores. The company, specializing in gold, diamond jewellery, and ornaments embellished with precious and semi-precious stones, is set to list its shares on the BSE SME platform.

The IPO opens for subscription on May 5, 2025, and closes on May 7, 2025, with the allotment expected to be finalized by May 8, 2025, and a tentative listing date set for May 12, 2025. The price band for the IPO has been set at ₹54 per equity share, offering a lot size of 2,000 shares. Retail investors must invest a minimum of ₹1,08,000, while High-Net-Worth Individuals (HNIs) must invest in 2 lots (₹2,16,000).

Financial Overview and Performance

Manoj Jewellers’ revenue from operations for FY 2024 stood at ₹4,297.20 Lakh, marking a notable increase from ₹1,363.52 Lakh in FY 2023. The EBITDA for FY 2024 was ₹677.37 Lakh, with a PAT of ₹376.66 Lakh, reflecting strong financial growth. The company’s Profit after Tax (PAT) has consistently grown, with a steady rise from ₹36.47 Lakh in FY 2022 to ₹376.66 Lakh in FY 2024. This growth is a key factor contributing to the IPO's attractiveness despite its modest Grey Market Premium (GMP) of ₹0.

The company's key financial ratios for FY 2024 are as follows:

• Pre-issue EPS: ₹5.42

• Post-issue EPS: ₹3.61

• Pre-issue P/E ratio: 9.96x

• Post-issue P/E ratio: 14.97x

• Industry P/E ratio: 26x

• Return on Capital Employed (ROCE): 30.57%

• Return on Equity (ROE): 39.63%

• Return on Net Worth (RoNW): 33.08%

These financial figures suggest a competitive valuation, with the company priced lower than industry peers, making it potentially attractive for investors looking for exposure to the jewellery market.

Objective of the IPO

The funds raised through this IPO will be used for:

1. Repayment/Prepayment of borrowings – ₹1,323.00 Lakh.

2. General Corporate Purposes – ₹167.00 Lakh.

These goals align with the company's broader strategy to reduce debt and strengthen its operations.

IPO Allotment Process

Investors can check the allotment status on the registrar's website from May 8, 2025. The process involves selecting the IPO name, entering your application number, PAN, or DP Client ID, and submitting the details to track the allotment status.

Grey Market Premium (GMP) and Listing Expectations

The Grey Market Premium (GMP) for Manoj Jewellers Limited IPO is currently ₹0, indicating that there is no significant expectation of listing gains in the unlisted market. As the GMP depends entirely on unorganized trading, it can vary based on demand and supply, and it is not an indicator of the company's actual performance post-listing. Investors should focus on the company's fundamentals for a clearer investment decision.

IPO Review and Investment Advice

While Manoj Jewellers has demonstrated solid financial growth, the GMP of ₹0 suggests that there may not be immediate listing gains. However, the company's consistent revenue and profit growth, reasonable valuation, and healthy financial ratios make it a fairly priced investment for long-term investors. Given the current market conditions and the company's growth trajectory, we recommend avoiding this IPO for short-term gains. However, it may be considered for long-term investment if the company's growth continues at this pace.

In summary, the Manoj Jewellers IPO offers a reasonable entry point for investors looking for exposure in the growing jewellery sector, but the lack of a premium in the grey market suggests caution for those seeking quick gains.

The Current active IPO are Srigee DLM, Manoj Jewellers, Wagons Learning, Kenrik Industries.

The Closed IPOs are  Arunaya Organic, Ather Energy, Iware Supplychain Services.

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