Manoj Jewellers IPO: Dates, Details, and What Investors Should Consider
Manoj Jewellers Limited is preparing to launch its Initial Public Offering (IPO), offering investors an opportunity to be part of its growth journey in the vibrant jewellery sector. With the subscription window opening soon, here’s a comprehensive look at the IPO details, company background, and key factors to evaluate.
Key IPO Details at a Glance
Here are the essential details for the Manoj Jewellers IPO:
| Detail | Information |
|---|---|
| Type | Fixed Price Issue, SME IPO |
| Issue Size | ₹16.20 Crore |
| Fresh Issue | 30,00,000 Equity Shares |
| Price Per Share | ₹54 (Fixed Price) |
| Minimum Investment (Retail) | ₹1,08,000 (1 Lot = 2,000 Shares) |
| Minimum Investment (HNI) | ₹2,16,000 (2 Lots = 4,000 Shares) |
| Listing Platform | BSE SME |
Important Dates Timeline
Mark your calendars with these key dates for the Manoj Jewellers IPO:
Open
Close
Allotment
Refunds
Listing
(Timeline is indicative and based on official dates provided in the RHP)
About Manoj Jewellers Limited
Operating in the retail and wholesale segments, Manoj Jewellers Limited specializes in gold and diamond ornaments. Their product portfolio is extensive, featuring everything from rings, bangles, and necklaces to intricate bridal sets, often adorned with precious and semi-precious stones. The designs aim to cater to diverse customer tastes and occasions.
Quality assurance is a significant focus for the company. They ensure the purity and durability of their gold through hallmarking via BIS-recognised centres. Currently, the company operates two showrooms situated in Chennai, providing direct customer engagement points.
The company is steered by promoters including Mr. Manoj Kumar, Ms. Raj Kumari, Mr. Sunil Shantilal, and Ms. Shalu, supported by an experienced management team overseeing various aspects of the business, from finance to design and marketing.
Understanding the Industry Landscape
The Indian jewellery market presents a promising backdrop for companies like Manoj Jewellers. Recent trends indicate:
- India’s gold demand saw a healthy rise in Q1 2024, including an increase in jewellery consumption year-on-year, suggesting a positive market sentiment for ornaments.
- The value of jewellery demand has also increased, alongside a notable jump in demand for gold as an investment asset. This dual growth supports businesses operating in both retail and investment segments of the market.
- Elevated gold prices, influenced by global economic factors and inflation concerns, have reinforced gold's traditional role as a safe haven asset, potentially boosting demand, particularly during peak seasons like festivals and weddings.
A Look at Financial Performance
Reviewing the company's financials over the past three years reveals a growth trajectory:
| Particulars (₹ lakh) | Year ending March 31, 2024 | Year ending March 31, 2023 | Year ending March 31, 2022 |
|---|---|---|---|
| Revenue from Operations | 4,335.11 | 1,363.01 | 675.18 |
| Profit After Tax (PAT) | 324.13 | 62.36 | 36.47 |
| Earnings Per Share (₹) | 5.42 | 1.14 | 0.69 |
| Return on Capital Employed (RoCE %) | 30.57 | 14.72 | 10.72 |
| Return on Equity (RoE %) | 39.63 | 13.87 | 16.20 |
| EBITDA (₹ lakh) | 571.70 | 203.51 | 164.87 |
Key Financial Metrics
| Key Performance Indicator | Value (as of March 31, 2024) |
|---|---|
| Return on Equity (RoE %) | 39.63 |
| Return on Capital Employed (RoCE %) | 30.57 |
| Debt/Equity Ratio | 1.57 |
| PAT Margin (%) | 7.48 |
Strengths and Potential Risks
Every investment opportunity comes with its set of positive aspects and potential challenges. Here's a look at those for Manoj Jewellers:
Strengths:
- A wide variety of jewellery caters to different preferences and budgets.
- Emphasis on design keeps the company aligned with market trends and customer demand.
- Over 15 years of experience from the promoters can contribute to stable business operations.
- A skilled management team brings diverse expertise in key areas.
- Building customer trust through dependable delivery and certified quality standards.
Potential Risks:
- Any legal proceedings involving key individuals could impact the company's focus and resources.
- Financial results can be significantly affected by the seasonal nature of jewellery sales.
- Failure to quickly adapt to changing consumer trends and fashion could reduce market relevance.
- Lower customer traffic in showrooms could negatively affect sales volume.
- Fluctuations in the price of gold can influence procurement costs and profit margins.
Objectives of the IPO
The net proceeds from the IPO are planned for the following uses:
- To reduce the company's existing debt by repaying or prepaying certain loans.
- To be utilised for general corporate requirements.
IPO Allocation Structure
The IPO is structured with reservations for different investor categories:
| Investor Category | Proportion of Net Issue |
|---|---|
| Retail Individual Investors (RII) | 50% |
| Other Investors | 50% |
Understanding the Lot Size
Here's the breakdown of the minimum and maximum application sizes:
| Application Type | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Minimum) | 1 | 2,000 | 1,08,000 |
| Retail (Maximum) | 1 | 2,000 | 1,08,000 |
| HNI (Minimum) | 2 | 4,000 | 2,16,000 |
Promoter Holding
The promoter group consists of S Manojkumar, Raj Kumari M, S Sunil, and Shalu. Their shareholding before the IPO stands at 94.99%, which will be reduced to 63.28% after the issue.
Peer Comparison Overview
Here's how Manoj Jewellers compares to some listed peers based on selected metrics:
| Company Name | EPS (Basic) | NAV (per share in ₹) | RoNW (%) |
|---|---|---|---|
| Manoj Jewellers Limited | 5.42 | 16.37 | 33.08 |
| D. P. Abhushan Limited | 27.8 | 235.41 | 25.91 |
| Moksh Ornaments Limited | 1.17 | 10.67 | 10.92 |
| Shubhlaxmi Jewel Art Limited | 1.22 | 20.44 | 5.63 |
How to Apply for the IPO
Applying for an IPO online is a streamlined process through your brokerage account. Typically, the steps involve:
- Logging into your online trading/investing platform.
- Navigating to the IPO section.
- Selecting the Manoj Jewellers IPO.
- Entering the desired lot size (within the limits for your investor category).
- Submitting your UPI ID for payment authorization.
- Approving the payment mandate request via your UPI app.
Checking Allotment Status
Once the allotment process is complete, you can check your status, usually via your brokerage platform or the IPO registrar's website. Notifications are often sent via email or push notifications by your broker.
Important Considerations for Prospective Investors
Before deciding to invest in the Manoj Jewellers IPO, market participants should:
- Thoroughly review the Red Herring Prospectus (RHP) for complete and official details.
- Understand the company's business model, financial health, and future growth prospects.
- Evaluate the industry outlook and competitive landscape.
- Assess their own investment goals and risk tolerance. SME IPOs, while potentially offering high rewards, also carry higher risks.
- Consider consulting with a qualified financial advisor to make an informed decision based on their individual circumstances.
Making well-researched investment decisions is crucial in the dynamic capital markets.
Registrar and Lead Manager
The IPO process is managed by key entities:
- Lead Manager: Jawa Capital Services Private Limited
- Registrar: Skyline Financial Services Private Limited
- Contact Number: 022-28511022
- Email Address: ipo@skylinerta.com
Conclusion
The Manoj Jewellers IPO offers an opportunity to invest in a jewellery company with established operations and a focus on quality within a growing industry. With the IPO opening on May 5, 2025, prospective investors have a limited window to participate. Carefully considering the company's details, financial performance, strengths, and risks, as outlined above and in the official RHP, is an essential step before making an investment decision.