Manoj Jewellers IPO Opens: Key Details & Review

The primary markets are witnessing renewed enthusiasm with a flurry of SME IPOs in 2025, and one of the latest additions is the much-anticipated fixed-price issue by Manoj Jewellers Limited. Scheduled to open on May 5, 2025, Manoj Jewellers IPO has generated significant interest among retail investors, thanks to its strong financials, compelling growth story, and promising industry outlook. However, its lack of grey market premium (GMP) also raises questions about the market’s current sentiment and expectations.

This article offers a detailed analysis of the Manoj Jewellers IPO, covering its financials, strengths, risks, objectives, peer comparison, valuation metrics, and expert opinions to help you make an informed investment decision.

IPO Snapshot: Key Details at a Glance

The IPO consists of a fresh issue only, with no Offer For Sale (OFS), indicating that the funds raised will directly benefit the company by supporting its growth objectives.

Share Reservation Structure

Manoj Jewellers has complied with SEBI norms by allocating shares in the following manner:

• Retail Investors: 50% of the net offer

• Non-Institutional Investors (NIIs): 50% of the net offer

• Market Maker Reservation: 1,52,000 shares

There is no allocation for Qualified Institutional Buyers (QIBs), which is common in fixed-price SME issues.

Financial Performance and Business Growth

Revenue and Profit Growth

Manoj Jewellers has delivered stellar growth over the past two years, raising investor interest:

• Revenue (FY23): ₹13.64 crore

• Revenue (FY24): ₹43.38 crore — a 218.03% YoY jump

• PAT (FY23): ₹0.62 crore

• PAT (FY24): ₹3.24 crore — a 422.58% YoY increase

Such aggressive top-line and bottom-line growth suggest that the company has successfully expanded its customer base and improved operational efficiencies.

Balance Sheet Metrics

The financials indicate a growing enterprise with a manageable debt-equity ratio and rising profitability.

Valuation Metrics

• EPS (Earnings Per Share): ₹5.42 (Pre-IPO), ₹5.59 (Post-IPO)

• P/E Ratio: 9.97 (Pre-IPO), 9.66 (Post-IPO)

• RoNW (Return on Net Worth): 33.08%

• ROE (Return on Equity): 39.63%

• ROCE (Return on Capital Employed): 30.57%

• PAT Margin: 7.48%

The valuation appears modest when compared to listed peers, especially considering Manoj Jewellers’ growth rate. The post-IPO P/E of 9.66 indicates that the issue is reasonably priced.

Peer Comparison

Although Manoj Jewellers is significantly smaller in size, its return ratios are among the best in the peer group, suggesting strong operational efficiency.

Company Overview

Founded in 2007, Manoj Jewellers Limited operates in the jewellery retail and wholesale business, dealing in:

• Gold jewellery

• Silver ornaments

• Gold coins

• Diamond-studded pieces with precious and semi-precious stones

The company has two retail outlets in Chennai and aims to expand its brand reach using the funds raised from this IPO.

IPO Objectives

The primary purpose of this IPO is to raise ₹16.20 crores for the following uses:

1. Repayment of Debt: Reducing interest burden and improving leverage ratios.

2. General Corporate Purposes: Marketing, operational enhancements, hiring, and store expansions.

This capital infusion can help the company scale operations and increase market share in a competitive landscape.

Grey Market Premium (GMP) Status

As of the latest update (2nd May 2025), Manoj Jewellers IPO GMP is reported at ₹0.

A zero GMP suggests tepid interest in the grey market, indicating limited listing gains unless fundamentals drive post-listing demand.

Expert Review & Analyst Opinion

Veteran market analyst Dilip Davda has flagged concerns regarding the sharp growth in FY24, which might not be sustainable. He categorizes this issue as “fully priced” and adds:

“There is no harm in skipping this fully priced ‘High Risk/Low Return’ bet.”

Although the fundamentals appear strong, especially the profitability and return ratios, investors must consider the possibility of margin pressure in a price-sensitive and fragmented jewellery sector.

Pros and Cons of the IPO

✅ Pros:

• Strong revenue and profit growth in the last two years

• High RoNW and RoCE indicating efficient capital usage

• Reasonably priced IPO with low P/E ratio

• Promoter group with years of industry experience

• Wide product portfolio with presence in both retail and wholesale

❌ Cons:

• Operates in a highly competitive and unorganized industry

• Limited geographic presence (only two outlets)

• Unclear visibility on long-term growth sustainability

• No GMP premium, indicating weak market excitement

• High minimum investment of ₹1,08,000 may deter small investors

Subscription and Allotment Process

Lot Sizes:

• Retail Minimum & Maximum: 1 lot = 2000 shares = ₹1,08,000

• HNI Minimum: 2 lots = 4000 shares = ₹2,16,000

Timeline:

How to Apply?

1. Use a demat account registered with any broker like Zerodha, Groww, or Univest.

2. Go to the IPO section and select “Manoj Jewellers IPO”.

3. Place your bid (minimum 1 lot = 2000 shares).

4. Approve the UPI mandate on your banking app.

5. Wait for allotment status on BSE or registrar portal (Skyline Financial Services).

Allotment Status: How to Check

You can check allotment status after 8th May 2025 through:

BSE Website:

• Visit https://www.bseindia.com

• Navigate to “Equity IPO Allotment”

• Select Manoj Jewellers IPO

• Enter PAN/Application No.

Registrar Portal (Skyline):

• Visit Skyline Financial Services

• Click on IPO Allotment section

• Fill in the application details to check your status

Final Verdict: Should You Apply?

Manoj Jewellers IPO is fundamentally backed by strong revenue growth, high return ratios, and moderate valuations. However, the industry is highly fragmented, and its recent performance spike might not be sustainable in the long term.

Recommendation:

• If you’re a risk-tolerant investor with an appetite for SME IPOs and long-term holding, you may consider applying.

• If you seek short-term listing gains, the lack of GMP and high retail entry cost suggests caution.

Conclusion

The Manoj Jewellers IPO reflects the ambitions of a growing regional jewellery brand trying to expand its footprint in a highly competitive market. While the numbers support the valuation, market sentiments remain neutral as evidenced by a flat GMP.

Retail investors should conduct their due diligence, keep an eye on subscription levels, and understand their risk appetite before applying. For those willing to stay invested beyond listing day, this IPO could offer moderate long-term growth — but without guarantees.

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