Manoj Jewellers IPO to List on BSE SME on May 12. Zero Grey Market Premium Raises Concerns of a Flat Listing. Details Inside.
Manoj Jewellers Ltd. launched its IPO on May 5th and closed it on May 7th, raising ₹16.20 crore. The IPO was a complete fresh issue of 30 lakh shares. These shares are scheduled to list on the BSE SME on May 12th. However, a major concern surrounding this IPO is its zero Grey Market Premium (GMP). This indicates a lack of market buzz and enthusiasm for the IPO.
Significance of GMP and Estimated Listing Price
The absence of significant activity in the grey market for the Manoj Jewellers IPO reflects a subdued investor sentiment. The zero GMP suggests that a substantial increase in the listing price is unlikely.
The IPO price is ₹55 per share, and based on the GMP, the estimated listing price could be around ₹54. This suggests a potential flat listing, with the share price neither significantly increasing nor decreasing immediately.
However, it's crucial to remember that GMP is only an indicator and can fluctuate.
Manoj Jewellers IPO Subscription Status
The subscription status of the Manoj Jewellers IPO also doesn't paint a positive picture.
The IPO received an overall subscription of 1.14 times. The retail category saw a subscription of 1.01 times, while the NII category received 1.27 times subscription. This clearly indicates limited investor interest in the IPO.
The IPO failed to attract significant investor attention, resulting in low subscription numbers. The absence of grey market activity may be a primary contributing factor.
About the Company
Manoj Jewellers Ltd., established in 2007, operates in the retail business of gold and diamond jewelry. Its product range includes earrings, rings, necklaces, bracelets, and pendants.
The company's main showroom is located in Chennai, and its products incorporate precious stones.
Financial Performance
Analyzing Manoj Jewellers' financial position reveals:
- FY23 revenue: ₹13.64 crore
- FY24 revenue: ₹43.38 crore
- Revenue up to December 31, 2024 (FY24): ₹42.97 crore
Regarding Profit After Tax (PAT):
- FY23 PAT: ₹62 lakh
- FY24 PAT: ₹3.24 crore
- PAT up to December 31, 2024 (FY25): ₹3.77 crore
Use of Proceeds from the IPO
The net proceeds from this IPO will be utilized to meet the company's working capital requirements and for general corporate purposes. This capital will be crucial for the company's growth and expansion.
Should Investors Invest in this IPO?
Manoj Jewellers IPO shares are set to list on May 12th, and the lack of GMP suggests a potential flat listing for investors. If you are a medium-to-long-term investor, this IPO might be a suitable option. However, short-term investors should carefully evaluate the risks before investing.
If considering investment, monitoring the post-listing performance will be essential. The market reaction to the flat listing will be crucial in forming an opinion.
