Manoj Jewellers Limited, a prominent player in the retail and wholesale jewellery market, is set to launch its IPO with an offer amounting to ₹16.2 crores. The IPO will consist entirely of a fresh issue of 30.00 lakh shares, priced at ₹54 each. As a business engaged in the creation and sale of gold and diamond jewellery, embellished with both precious and semi-precious stones, Manoj Jewellers has carved a niche in the wedding jewellery segment.

The company offers a broad portfolio, including rings, earrings, necklaces, bracelets, chains, nose rings, and bangles, serving both retail and wholesale markets. The IPO opens on May 5, 2025, and will close on May 7, 2025, with an allotment date scheduled for May 8, 2025. The shares will be listed on the BSE SME with a tentative listing date set for May 12, 2025.

Financial Overview:

Manoj Jewellers has shown consistent growth in its financial performance over the past few years. For the period ended December 31, 2024, the company reported revenues of ₹4,297.20 Lakh, showing a steady upward trajectory when compared to the ₹1,363.52 Lakh and ₹675.82 Lakh for FY 2023 and FY 2022 respectively. The company’s EBITDA also reflects growth, reaching ₹677.37 Lakh in FY 2024, up from ₹204.02 Lakh in FY 2022.

The company’s Profit After Tax (PAT) also shows strong upward growth, reaching ₹376.66 Lakh in FY 2024 compared to ₹62.36 Lakh in FY 2023 and ₹36.47 Lakh in FY 2022. This financial improvement indicates the company’s steady operational performance and efficient management.

Valuation and Investment Insights:

The IPO price of ₹54 per share places the market capitalization of the company at ₹48.52 crores at the IPO price. With a pre-issue EPS of ₹5.42 and a post-issue EPS of ₹3.61, the company shows a P/E ratio of 9.96x, which is below the industry P/E of 26x, suggesting a relatively undervalued IPO compared to industry peers. Despite this, the company's post-issue P/E of 14.97x is relatively high.

The Return on Capital Employed (ROCE) for FY24 stands at 30.57%, with a Return on Equity (ROE) of 39.63%. These are impressive figures that demonstrate strong profitability and operational efficiency.

Grey Market Premium (GMP) and Subscription Status:

The Grey Market Premium (GMP) for Manoj Jewellers Limited IPO currently stands at ₹0, indicating no expected listing gains. As of May 6, 2025, at 10:20 AM, the IPO subscription is at 0.29x, indicating a slow uptake among investors.

Objectives of the IPO:

Manoj Jewellers intends to use the net proceeds from the IPO for:

1. Repayment/prepayment of borrowings: ₹1,323.00 lakh will be allocated to reduce the company’s debt obligations.

2. General corporate purposes: ₹167.00 lakh will be utilized for overall corporate functions and growth activities.

Manoj Jewellers IPO Allotment Date:

The allotment for Manoj Jewellers IPO will be finalized on May 8, 2025, and investors can check their status through the registrar’s website by entering details like application number, PAN, or DP Client ID.

IPO Review:

While Manoj Jewellers has demonstrated strong financial performance, the Grey Market Premium of ₹0 suggests low demand in the unorganized market, which raises concerns about potential listing gains. Additionally, with the IPO priced at ₹54 per share, the post-issue P/E ratio is higher compared to industry standards, which may make it less appealing for long-term investment purposes.

Given the company’s financial metrics, **we recommend that investors avoid investing in this IPO for listing gains or long-term investment purposes. The lack of a Grey Market Premium, combined with a higher-than-average P/E ratio post-issue, suggests that the IPO may not offer substantial short-term returns or long-term growth potential.

The Upcoming IPOs in this week and coming weeks are Virtual Galaxy Infotech,Wagons Learning.

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

The Closed IPOs are  Arunaya Organic.

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