BackVaibhav Jewellers IPO subscribed 14%, retail investors bid highest on first day of issue
Vaibhav Jewellers IPO has been subscribed 14 per cent so far on Friday, September 22. The public issue will remain open for bidding till Tuesday, September 26, 2023.
PremiumVaibhav Jewellers IPO Subscription Status: The initial public offering (IPO) of hyperlocal jewellery retail chain received a muted response from investors on the first day of its issue. Vaibhav Jewellers IPO has been subscribed 14 per cent on Friday, September 22. The public issue will remain open for bidding till Tuesday, September 26, 2023.
The jewellery firm has reserved half of the offer size for the Qualified Institutional Buyers’ (QIB), 15 per cent for high net-worth individuals or Non-Institutional Investors (NIIs), and the remaining 35 per cent for retail investors.
Also known as Vaibhav Jewellers, the firm is a regional jewelry brand in South India. The company offers gold, silver, and diamond jewelry, precious gemstones, and other jewellery products through retail showrooms and its website.
Also Read: Vaibhav Jewellers IPO to open on September 22; From GMP to price band - here are 10 things to know
The hyperlocal jewellery retail chain with presence in Andhra Pradesh and Telangana has 13 showrooms including two franchisee showrooms, across eight towns and two cities. It is a 100 per cent promoters-owned company.
Vaibhav Jewellers IPO Subscription Status
Vaibhav Jewellers IPO has been subscribed 14 per cent times so far on the first day as the issue received bids for 12,32,409 shares as against 91,20,664 shares on the offer, till 5:30 pm.
The issue has been subscribed 25 per cent in the retail investors' category and 0.5 per cent in the NII category. The portion reserved for QIBs has not been booked so far as the investors have not started bidding in the issue as yet, as per data available on BSE.
Vaibhav Jewellers IPO's retail investors' portion received bids for 11,34,429 shares against 45,82,941 shares on offer for this segment. Vaibhav Jewellers IPO's NIIs' portion received bids for 97,980 shares against 19,64,118 on the offer for this segment. Vaibhav Jewellers IPO's QIBs portion received bids for zero shares against 25,73,605 on offer for this segment.
Vaibhav Jewellers IPO GMP today
Vaibhav Jewellers IPO GMP today or grey market premium is ₹10. This indicates Vaibhav Jewellers share price were trading at a premium of ₹10 in the grey market on Wednesday, according to topsharebrokers.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vaibhav Jewellers share price is ₹225 apiece, which is 4.65 per cent higher than the IPO price of ₹215.
According to topsharebrokers.com, the lowest GMP is ₹0, while the highest GMP is ₹50. 'Grey market premium' indicates investors' readiness to pay more than the issue price.
Vaibhav Jewellers IPO Details
Vaibhav Jewellers IPO price band has been fixed in the range between ₹204 - ₹215 per equity share at a face value of ₹10 each for the public issue. Vaibhav Jewellers IPO is a book-built issue.
The offer comprises a fresh issuance of shares worth ₹210 crore, and an offer-for-sale of 28 lakh shares worth ₹60.2 crore by promoter Grandhi Bharata Mallika Ratna Kumari (HUF). Investors can bid for a minimum of 69 equity shares and in multiples of 69 shares thereafter.
The company plans to utilise the fresh issue proceeds to finance the establishment of the proposed eight new showrooms, i.e., capital expenditure cost for the proposed showrooms, inventory cost of the showrooms and for general corporate purposes.
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