Manoj Vaibhav Gems N Jewellers, which is known through its brand identity of Vaibhav Jewellers in South India, is set to make its Dalal Street debut on Tuesday, October 3. However, the stock may disappoint the investors on its debut, if one goes by the signals from the grey market.

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Last heard, shares of Manoj Vaibhav Gems N Jewellers were commanding a grey market premium (GMP) of Rs 5, suggesting a flat-to-slightly positive listing against its issue price of Rs 215 apiece.

The issue was subscribed to 2.25 times overall, which is a decent response. The quota set aside for high net-worth individuals was subscribed 5.40 times, retail quota got 1.73 times bids and the qualified institutional buyers portion fetched 1.08 times bids.

"With the Manoj Vaibhav Gems N Jewellers IPO receiving a tepid subscription of about 2.25 times overall, we expect a flattish opening for the issue on Tuesday," said Dhruv Mudaraddi, research analyst at StoxBox.

Astha Jain, senior research analyst at Hem Securities, too, is expecting a status quo listing for Vaibhav Jewellers.

The Rs 270-crore initial stake sale of the jewelry company was open for subscription between September 22-September 26. The company sold its shares in the range of Rs 204-215 apiece with a lot size of 69 equity shares during the three-day bidding process.

The funds raised will be utilised for opening eight new showrooms, inventory for these new stores and general corporate purposes.

Bajaj Capital Ltd and Elara Capital (India) Pvt Ltd were the book-running lead managers to the issue, while Bigshare Services was the registrar.

Vaibhav Jewellers was supposed to list on October 6, as per the IPO schedule. The Securities and Exchange Board of India (SEBI) has changed the listing timeline to T+3 for IPOs (issue closing date + three working days), in June 2023, from T+6 timeline earlier.

With this, the capital market regulator has asked companies launching IPOs with effect from September 1, 2023, to use the new timeline voluntarily but made it mandatory for companies opening IPOs with effect from December 1, 2023.

Hence, Vaibhav Jewellers will list in the T+3 timeline.

Incorporated in 2003, the regional jewellery brand is led by first-generation woman entrepreneur Bharata Mallika Ratna Kumari Grandhi, along with her daughter Grandhi Sai Keerthana.

The company offers gold, silver jewellery, diamond jewellery, precious gemstones, and other jewellery products. It sells its product range through its retail showrooms in micro markets of Telangana and Andhra Pradesh and through its website.

First Published:Oct 2, 2023 4:27 PM IST