Manoj Vaibhav Gems N Jewellers Ltd IPO

Manoj Vaibhav Gems 'N' Jewellers Limited was originally incorporated as a private limited company under the provisions of the Companies Act, 1956 on March 13, 1989 as Hotel Anant Private Limited. The name of Company was changed to Hotel Anant Limited vide Certificate of incorporation dated March 09, 1998 issued by the Registrar of Companies, Andhra Pradesh on account of the Company becoming a deemed public company. The name of Company was changed to Hotel Anant Private Limited vide Certificate of incorporation dated September 13, 2002 issued by the Registrar of Companies, Andhra Pradesh to the Company regaining its status as a private limited company. The name of the Company was subsequently changed to Vaibhav Empire Private Limited pursuant to fresh certificate of incorporation issued by the Registrar of Companies, Hyderabad, Andhra Pradesh dated June 11, 2003. Subsequently, the name of the Company was changed to Manoj Vaibhav Gems 'N' Jewellers Private Limited and a fresh certificate of incorporation was issued by the Registrar of Companies, Hyderabad, Telangana dated July 04, 2016. Pursuant to a special resolution passed by its shareholders dated April 30, 2022, the Company was converted to a public limited company and its name was changed to Manoj Vaibhav Gems 'N' Jewellers Limited. A fresh certificate of incorporation consequent to change of name was issued by the Registrar of Companies, Vijayawada, Andhra Pradesh (RoC) dated May 13, 2022.

Global jewellery market is estimated at $340.7 billion in CY 2022 and is a significant contributor to the world economy. It is also for centuries is an expression of creativity, status, and exclusivity. Diamond and gold are two precious items contributing m ore than 50% of the global jewellery market. USA, China, and India are the top three markets in the global jewellery market with different pecking order in diamond and gold jewellery market. India in addition to being a big market also plays a significan t role in the supply chain of both gold and diamond jewellery market. The global gold market is estimated at 4742 tons valued in CY 2022 at close to USD 305.9 billion at average value of LBMA gold price of $1800.0 per ounce. Demand for gold gets its highest contribution from jewellery retail with 45% of share to overall gold demand. Investment demand in terms of gold coins and bar and ETFs contributed close to 23% of demand with rest coming from central bank and electronics and other technology led sectors. However, COVID has led to a change in distribution of sha res across different segments. In a normal year jewellery contributes 45% of the demand whereas investment demand in terms of gold coins and bars and ETFs contribute 23% of the total demand. Central bank contribution has been close to 17% with the remaining contribution from technology. The Indian jewellery reta il sector's size in FY 2023 was close to USD 70 billion. The sector's orga nized reta il sha re stood at approximately 32%, comprised of national and regional players, while the rest of jewellery retail continues to be dominated by the unorganised segment, comprised of over 500,000 local goldsmiths and jewellers. The jewellery retail market is expected to grow to approximately USD 124 billion by FY 2027 on account of the growing economy and rising disposable income, increasing consumer demand for gold, growth in gold prices and rising demand for other categories like diamonds, other precious stones and costume jewellery. In FY 2023, the total market size of Andhra Pradesh and Telangana was USD 3.3 Bn and USD 2.8 Bn respectively. While the Andhra Pradesh jewellery market is expected to grow to USD 6.3 Bn by FY 2027 at a CAGR of ~18%, the Telangana market is expected to grow to USD 5.3 Bn during the same period at a CAGR of ~18%. Rural market in the state of Andhra Pradesh and Telangana contributes 50-52% of the total jewellery market in FY 2023 in these two states. 60-70% of the rural demand for jewellery is driven by weddings followed by the need for investment post -harvest. Organized market contributed ~39% of the total jewellery market in the states of Andhra Pradesh and Telangana in FY 202 3 and expected to grow to ~45% of the total market by FY 2027. The current organized market of USD 2.35Bn in Andhra Pradesh and Telangana together is expected to grow at a CAGR of 22% to USD 5.21 Bn by FY 2027. Regional and National Brands have identified the potential of Andhra Pradesh and Telangana and have a substantial share of their store network in these locations. Regional and National players have significant presence in Tier 2 and 3 cities which are the new consumption hubs and cater to the semi urban and rural consumer The larger players in the organised space consolidated the market share away from the unorganised segment because of weak balance sheets of the smaller players and their inability to sustain during the lockdowns which severely constricted their ab ility to ma inta in their opera tions. Furthermore, on the dema nd side, consumers' desire for a sa fer shopping experience with la rger shop space which permits social distancing, well trained store personnel and strong systems/processes that ensured a safe ret ail experience benefitted the large, organized jewellers

Manoj Vaibhav Gems `N' Jewellers Limited is a leading regional jewellery brand in South India led by first generation woman entrepreneur. Bharata Mallika Ratna Kumari Grandhi along with her daughter Grandhi Sai Keerthana. The Company is a hyperlocal jewellery retail chain with presence in the micro markets of Andhra Pradesh & Telangana with 13 showrooms (inclusive of two franchisee showrooms) across 8 towns and 2 cities. The Company has a market share of ~4% of the overall Andhra Pradesh and Telangana jewellery market and ~10% of the organised market in these two states in FY2023, as per the Technopak Report. The Company was one of the earlier entrants in the organised jewellery retail market of Andhra Pradesh and continue to focus on regional expansion into the high growth untapped regions within the micro-markets of Andhra Pradesh & Telangana thereby creating a market for branded jewellery in the area of its operations.