Manoj Vaibhav Gems ‘N’ Jewelers Limited’s Rs 270.2-crore initial public offering entered its second day on Monday. The issue has so far been subscribed by just 14% on the first day (Friday).
The public offering will close on September 26 (Tuesday), with the number of shares in circulation being 69 shares.
The South Indian jeweler has a fixed price range of Rs 204-215. The jewelery company’s IPO includes fresh issue worth Rs 201 crore and an offer price of Rs 602 million. Retail investors can subscribe up to 35% of the IPO, while the company has reserved 50% stake to qualified institutional bidders (QIBs) and 15% to non-institutional investors.
The subscription rate for the retail individual investor category is 25% and the subscription rate for the non-institutional investor category is 5%.
The Andhra Pradesh-based jewelery company received bids for as many as 12.32 million shares against the offer of 9.12 million shares, translating to a total subscription rate of 14 per cent, according to provisional exchange data.
8 major investors
As part of the IPO, the company decided to allot Rs 3.77 million of equity shares at Rs 215 per share, raising Rs 81.06 million from eight major investors. Quantum-State Investment Fund, Tano Investment Opportunities Fund, Nexus Global Opportunities Fund, Coeus Global Opportunities Fund, Neomile Growth Fund, AG Dynamic Funds, Chhatisgarh Investments and Eminence Global Fund are the investors on the anchor book.
Funding for new showroom
The company, which has 13 showrooms, will use the net proceeds from the new issue to set up the proposed eight new showrooms and the remaining funds will be used for general corporate purposes.
Bajaj Capital and Elara Capital (India) are the lead managers for the issue, while Bigshare Services has been appointed as the registrar for the issue. The company’s shares will be listed on BSE and NSE.