Manoj Jewellers Limited, engaged in the retail and wholesale business of jewellery made from gold, diamonds, and precious stones, is set to launch its IPO on May 5, 2025. The offering is a Fixed Price Issue amounting to ₹16.2 crore, entirely composed of a fresh issue of 30 lakh shares. The IPO aims to provide an opportunity for investors to participate in the growth of a well-established player in the jewellery market.

Key Details:

• Subscription Period: May 5–7, 2025

• Issue Price: ₹54 per share

• Market Capitalization at IPO Price: ₹48.52 crore

• Lot Size: 2,000 shares

• Minimum Investment: ₹1,08,000 for retail investors and ₹2,16,000 for HNIs (2 lots)

The shares will be listed on BSE SME, with the allotment expected to be finalized on May 8, 2025, and the listing date set for May 12, 2025. Jawa Capital Services Private Limited serves as the book-running lead manager, and Skyline Financial Services Private Limited is the registrar for the issue.

Financials & Performance

Manoj Jewellers has demonstrated strong growth over the past few years. In FY 2024, the company’s revenue from operations stood at ₹4,297.20 lakh, reflecting a steady increase from ₹1,363.52 lakh in FY 2022. The company’s EBITDA for FY 2024 was ₹677.37 lakh, and Profit After Tax (PAT) for FY 2024 was ₹376.66 lakh. These figures indicate a positive trajectory and strong operational efficiency.

The pre-issue earnings per share (EPS) is ₹5.42, with a post-issue EPS of ₹3.61 for FY 2024. The company’s Price-to-Earnings (P/E) ratio is 9.96x pre-issue and 14.97x post-issue, which is relatively lower than the industry average of 26x. Return on Capital Employed (ROCE) for FY 2024 is 30.57%, and Return on Equity (ROE) is 39.63%. These metrics suggest that the IPO is reasonably priced and potentially attractive for investors.

Grey Market Premium (GMP)

As of today, the Grey Market Premium (GMP) for the Manoj Jewellers IPO is reported to be ₹0, which indicates neutral market sentiment and no significant premium or discount in the unofficial market. This GMP status suggests that demand and supply dynamics in the grey market are balanced, offering no clear indication of significant listing gains.

Objectives of the Manoj Jewellers IPO

The net proceeds from the Manoj Jewellers IPO will be utilized for the following purposes:

1. Repayment of borrowings: ₹1,323 lakh will be allocated to reduce existing debt.

2. General corporate purposes: ₹167 lakh will be used for expansion and other operational requirements.

Manoj Jewellers IPO Allotment Status

The IPO allotment will be finalized on May 8, 2025, and investors can check the allotment status on the registrar’s website. To check your allotment status:

• Visit the IPO allotment status page.

• Select Manoj Jewellers Limited IPO from the dropdown.

• Enter your application number, PAN, or DP Client ID.

• Submit the details to view the allotment result.

IPO Review

Despite Manoj Jewellers' steady growth in revenue and profit, the Grey Market Premium of ₹0 and a pre-issue P/E ratio of 9.96x make it clear that there is limited enthusiasm for significant short-term gains. Given the financial metrics, such as low P/E ratios compared to the industry average and solid return ratios (ROCE, ROE), we suggest that investors should approach this IPO with caution.

Recommendation: While the IPO is fairly priced based on the company’s financial performance and market metrics, the absence of GMP and the conservative growth trajectory suggest that this IPO may not generate significant listing gains. Thus, long-term investors or those seeking listing gains may want to avoid participating unless they are confident in the company's long-term growth.

Conclusion

Manoj Jewellers Limited IPO is an interesting prospect, but the neutral GMP and modest financial growth raise questions about its immediate potential for gains. However, investors with a long-term view and confidence in the jewellery market may find value in this offering.

The Upcoming IPOs in this week and coming weeks are  Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries,Arunaya Organics, Ather Energy, Iware Supplychain Services.

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