Manoj Jewellers Limited is a prominent player in the retail and wholesale jewellery market. The company offers a wide array of jewellery items, including rings, earrings, necklaces, bracelets, and wedding jewellery made from gold and diamonds, adorned with precious and semi-precious stones. The company’s diverse portfolio has earned it recognition in the industry, and it now plans to raise ₹16.2 Crores through its IPO.

IPO Details and Structure
The Manoj Jewellers IPO is a Fixed Price Issue, offering 30.00 lakh shares at a price of ₹54 per equity share. This fresh issue will contribute to the company's expansion and operational improvements. The IPO opens on May 5, 2025, and will close on May 7, 2025. The share allotment process will be finalized on May 8, 2025, and the shares are expected to be listed on the Bombay Stock Exchange (BSE) SME platform by May 12, 2025.

The IPO's market capitalization at the issue price of ₹54 per share will be ₹48.52 Crores. The lot size for retail investors is 2,000 shares, requiring a minimum investment of ₹1,08,000. High Net-Worth Individuals (HNIs) are required to invest a minimum of ₹2,16,000 for two lots (4,000 shares).

Grey Market Premium (GMP)
The Grey Market Premium (GMP) of the Manoj Jewellers IPO is currently ₹0. This means that the shares are not expected to trade at a premium in the grey market. The GMP, often considered an early indicator of potential listing gains, shows that there is no significant interest in the shares in the unregulated market. However, the GMP is not a reliable measure of actual listing price or performance and is provided for informational purposes only.

Subscription Status and Allotment Process
The subscription period for the Manoj Jewellers IPO has been active since May 5, 2025, and as of the final day, May 7, 2025, the IPO has been subscribed 0.58 times. This suggests a lukewarm response from investors. The allotment status will be available on May 8, 2025, and investors can check it on the registrar's website. To check the allotment status, investors must enter their application number, PAN, or DP Client ID on the portal.

Objectives of the IPO
The funds raised through the IPO will be used primarily for repaying certain borrowings and for general corporate purposes. Specifically:

1. ₹1,323.00 Lakh will be used for the repayment/prepayment of borrowings.

2. ₹167.00 Lakh will be allocated for general corporate purposes.

Company Financials and Growth
Manoj Jewellers has demonstrated consistent growth in its financial performance over the past few years. The company’s revenues from operations for the year ending December 31, 2024, were ₹4,297.20 Lakh, which represents a steady increase over previous years. The company's EBITDA for 2024 stood at ₹677.37 Lakh, and the profit after tax for the year was ₹376.66 Lakh.

For the fiscal year 2024, the company reported a pre-issue EPS of ₹5.42, and post-issue EPS of ₹3.61. With a pre-issue P/E ratio of 9.96x and a post-issue P/E ratio of 14.97x, Manoj Jewellers’ IPO appears fairly priced when compared to the industry P/E ratio of 26x. Additionally, the company boasts impressive returns on capital employed (ROCE) of 30.57% and return on equity (ROE) of 39.63%.

Investment Recommendation
Despite the company’s solid growth trajectory and attractive financials, the Manoj Jewellers IPO is not expected to offer significant listing gains based on current market conditions. The Grey Market Premium of ₹0 suggests that the shares may not experience a significant upward movement post-listing. Investors are advised to approach the IPO cautiously, as it may not generate immediate listing gains, but could hold potential for long-term investors seeking exposure to the jewellery sector.

Given the fair pricing of the IPO and steady growth in earnings, the IPO appears to be reasonably priced, but the absence of any Grey Market Premium raises concerns regarding short-term gains. Hence, potential investors may wish to reconsider their investment strategies, especially if they are looking for listing gains.

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

The Current active IPO are Virtual Galaxy Infotech.

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