Manoj Jewellers, listed on the BSE SME platform at ₹53.95 price

The famous name in retail jewellery in Chennai, Manoj Jewellers Limited company, is all set to go for a listing on the BSE SME platform. After closing its IPO bidding between May 5-7, 2025, the company will be making its debut in the stock market on May 12, 2025. This fixed-price IPO is big for the jeweller as it hopes to broaden its business presence, repay debts, and fund its future expansion. 

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Manoj Jewellers Listing Details

Manoj Jewellers Limited put forth its IPO as a fixed-price one: ₹54 per share. The least investment in the IPO would necessitate buying 2,000 shares at a cost of ₹1,08,000. IPO got a muted response- retail sector 0.52 times subscription and 0.84 times in the NII segment as of Day 2 of bidding. 

• Listing Price: The Manoj Jewellers IPO share price opened at ₹53.95 on 12-May-25 on the BSE SME platform at a post-issue market capitalisation of about ₹48.52 crore.
• Investor Sentiment: Manoj Jewellers holds a favorable position in the organized jewellery market through its BIS certification programs and financial stability strategy.

First-Day Trading Performance Outlook

Manoj Jewellers plans to launch on the BSE SME platform for trading on May 12, 2025. The company begins its market entry by releasing BIS-certified jewelry alongside strong financial ratios and the knowledge base of its founders. During market entry to BSE SME investors along with financial analysts will analyze present stock market sentiment combined with potential growth possibilities.

Market Sentiment and Analysis

Chennai residents recognize Manoj Jewellers Limited as one of the city's prominent retail brands that sells BIS-certified gold and diamond jewelry pieces. Since 2007 the enterprise started operating while obtaining recognition for premium merchandise alongside clear customer connections and rapid delivery of services.

• Market Sentiment: Investors actively monitor the firm to evaluate its brand value and financial performance at all times.
• Performance Indicators: Manoj Jewellers shows strong returns on investment at 39.63% combined with steady returns on capital at 30.57%.
• Listing Outlook: High financial results with known brand power show that the company will stay safe when starting its stock market journey.

Growth Drivers and Challenges

Manoj Jewellers has strong growth potential with its BIS-certified jewellery, trusted brand name, and good financial performance. The rising demand for organised jewellery retail supports its future plans. However, the company also faces challenges like limited store presence, tough competition, and the need to manage its debt while growing steadily.

Growth Drivers:

• Wide Product Range: Offers BIS-certified gold and diamond jewellery across various categories.
• Strong Financials: High RoE (39.63%) and RoCE (30.57%) reflect solid business performance.
• Experienced Promoters: Led by industry veterans with deep market understanding.
• Trusted Brand: Known for quality, purity, and customer satisfaction in the Chennai market.

Challenges:

• Limited Presence: Operates mainly through one showroom, restricting wider reach.
• High Competition: Faces pressure from large national jewellery chains and local players.
• IPO Response: Low subscription may reflect investor caution.
• Debt Levels: A relatively high debt-to-equity ratio of 1.57 needs careful management.

Utilisation of IPO Proceeds

Manoj Jewellers plans to use the ₹16.20 crore raised from the IPO to strengthen its financial position and support business operations.

• Loan Repayment: Around ₹13.23 crore will be used to repay or prepay existing borrowings, helping reduce interest costs and improve cash flow.
• General Corporate Purposes: ₹1.67 crore is allocated for general business needs, including operational expenses and future growth planning.

Financial Performance of Manoj Jewellers

Manoj Jewellers has shown strong financial growth, driven by rising demand and efficient operations:

• Revenue: ₹42.97 crore as of December 31, 2024, showing consistent sales from its retail jewellery business.
• Net Profit: ₹3.77 crore by December 2024, supported by improved margins and cost control.
• Net Worth: Increased from ₹9.8 crore in FY23 to ₹13.57 crore by December 2024, reflecting healthy reinvestment and financial stability.

Manoj Jewellers offers a solid investment opportunity with its trusted brand, strong financials, and focus on quality. While it faces challenges like limited store presence and competition, its consistent growth and experienced management position it well for future success. The IPO presents a chance for investors to be part of a growing jewellery brand with long-term potential.