Manoj Jewellers IPO

About Manoj Jewellers Ltd IPO

The IPO of Manoj Jewellers Ltd comprises a fresh issue of 30,00,000 equity shares aggregating up to ₹16.20 crores. It has no offer for sale and is a 100% fixed price issue.

Objectives of Manoj Jewellers Ltd IPO

• Repayment/ prepayment of certain borrowings availed by the company
• General corporate purpose

Industry Outlook

India’s pronounced preference for gold and deep-rooted cultural significance has gradually led to the development of a thriving gold-based financial market in the country. The precious metal plays a multifaceted role as a wealth-preservation asset, a hedge against inflation, and collateral for securing loans.

India is the second largest jewellery market. In 2021, India bought 611t of gold jewellery, second only to China (673t) but comfortably ahead of all other gold-consuming markets ahead of all other gold-consuming markets. Overall, the Indian market will continue to evolve as the younger generation drives trends and as organised retailers gain market share. Retailers are trying to tap into the sizable young population by offering products that suit their tastes and budget.

Company Information

Manoj Jewellers Ltd is engaged in the retail and wholesale business of jewellery and ornaments made from gold and diamonds, embellished with precious and semiprecious stones. Its diverse collection caters to various tastes and occasions, offering customers a selection of exquisite pieces to choose from. Manoj Jewellers Limited aims to provide high-quality and beautifully crafted jewellery to meet the needs and preferences of its clientele.

Risks of Manoj Jewellers Ltd IPO

• Seasonal Fluctuations
  

The company operates in an industry that is driven by seasonal fluctuations. Its sales peak during festival/wedding seasons and on occasions such as Akshay Tritiya, Dhanteras, Diwali, wedding season, etc. Lower than expected net sales during the third or fourth quarters of the fiscal year or more pronounced seasonal variations in sales in the future could have a disproportionate impact on its operating results for the fiscal year, or could strain its resources and impair its cash flows.

• High Cost of Quality Gold Bullions and Diamonds
  

The jewellery industry is generally affected by fluctuations in the price and supply of gold, diamonds and, also to some extent, other precious and semi-precious metals and stones. Timely procurement of materials such as gold bullion, diamonds and precious and semiprecious stones, as well as the quality and the price at which it is procured, play an important role in the successful operation of its business.

Accordingly, its business is affected by the availability, cost and quality of raw materials. The prices and supply of these and other materials depend on factors beyond its control, including general economic conditions, competition, production levels and regulatory factors such as custom duties.

• Adverse Impact on Discretionary Spending
  

Jewellery purchases are typically high-value, luxury purchases and depend on the consumer's discretionary spending power. Various factors affect discretionary consumer spending, including economic conditions, perceptions of such conditions by consumers, economic outlook, employment, the level of consumer’s disposable income, the savings ratio, business conditions, inflation levels, interest rates, consumer debt and asset values, availability of credit and levels of taxation, among others.

Any factor negatively impacting discretionary spending by consumers may adversely affect its business, results of operations, financial condition and prospects.

Anchor Investor Bidding Date NA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Skyline Financial Services Pvt Ltd
• Book Running Lead Manager: Jawa Capital Services Pvt Ltd

Business Model

Engaged in the retail and wholesale business of jewellery and ornaments made from gold and diamonds, embellished with precious and semiprecious stones, Manoj Jewellers Ltd’s products include:

• Temple Jewellery
  
• Gold Coin
  
• Diamond Ring
  
• Gold Bangles
  
• Diamond Necklace studded with Precious & Semi Precious Stones
  
• Traditional Kumar Patta
  
• Gold hair line for women
  
• Earrings
  
• Gold Bracelet Studded with Diamonds and Emerald
  
• Women’s Gold Chain
  
• Gold pendant
  
• Men’s Gold Chain
  

Company Growth Trajectory

Revenue from operations of Manoj Jewellers Ltd increased from ₹6.7518 crores in FY 22 to ₹43.3511 crores in FY 24. Its EBITDA increased from ₹1.6487 crores in FY 22 to ₹5.7170 crores in FY 24, while its PAT margin increased from 5.40% in FY 22 to 7.48% in FY 24. Its wide product range and experience of its senior management team have played a vital role in the growth of the company over the years.

Market Position

Located in Chennai, Tamil Nadu, Manoj Jewellers Ltd emphasises on offering a variety of regular designs and ensuring on-time delivery to its valued customers. Additionally, it goes the extra mile by getting its jewellery hallmarked by a BIS recognised Assaying and Hallmarking Centre.

Its success is the result of sustained efforts over the years in key aspects of its business, such as timely delivery, cost management, good quality and ability to forge partnerships, strategy and business planning and opening new markets.

How to Check Allotment Status of Manoj Jewellers Ltd?

Visit the Registrar’s Website

• Visit the official website of Skyline Financial Services Ltd
• Click on ‘Check Allotment Status’ under ‘Rights Issue’ from ‘Investors’ dropdown
• Choose the company name and enter DP ID, CAF number or PAN No
• Click on ‘Search’ to know the status

Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
  
• Select the Issue Name from dropdown
  
• Put in either your application number or PAN number
  
• Check the box ‘I’m not a robot
  
• Click on ‘Search’ to know allotment status
  

How to Apply for Manoj Jewellers Ltd IPO?

• Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
  
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.