Introduction:
Most Initial Public Offerings (IPOs) that hit the market recently got overwhelming responses from investors, mainly due to the prevailing bullish sentiments, attractive valuations, and the potential for sizeable listing gains. As we approach the end of 2023, the buzz and excitement in the primary market refuse to die as several companies plan to get listed on the stock exchanges.
One such company that has garnered significant attention is RBZ Jewellers Limited. The India-based gold jewellery manufacturer plans to raise approximately Rs. 100 crores through its IPO, comprising a fresh issue of 1 crore equity shares with a face value of Rs. 10 each. The IPO opened for public subscription on Tuesday, 19 December 2023, and closes on Thursday, 21 December 2023.
Continue reading to know more details about the RBZ Jewellers IPO, including the latest grey market premium (GMP), subscription status, price band, lot size, listing date, and more.
About RBZ Jewellers Limited
Incorporated in April 2008, RBZ Jewellers is India's leading gold jewellery manufacturer specialising in antique jewellery designs. The company crafts and produces an extensive collection of vintage gold jewellery, including pieces with Jadau, Meena, and Kundan craftsmanship, offering them both wholesale and retail. Their wholesale clientele primarily includes prominent national and regional jewellery brands, as well as individual family jewellers.
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As of 31 March 2023, RPZ Jewellers’ customer base is spread across 20 Indian states and 72 cities. The company’s retail showrooms operate with the “Harit Zaveri” brand and enjoy massive popularity in Ahmedabad, Gujarat. It also has a 23,996-square-foot manufacturing facility in Ahmedabad. The company’s top clients for the financial year 2023 include Titan, Joyalukkas India, Malabar Gold Private, Hazoorilal Jewellers Private Limited, and Senco Gold.
Key Strengths of the Company
RBZ Jewellers Limited has highlighted certain key strengths in its Red Herring Prospectus, which is available on the Securities and Exchange Board of India (SEBI) website. They include:
- The company is among the leading gold jewellers in India with a specialisation in antique jewellery designs
- The company’s manufacturing facility can design and manufacture jewellery products under a single roof
- The company has a diverse client base spread across the national geography
- The company is famous for its innovative and unique jewellery designs
- The company boasts a team of highly skilled jewellery designers and artisans
- The company has maintained long-standing relationships with its marquee customers
- The company employs strict quality control mechanisms and hallmarking processes
Key Risks or Weaknesses Highlighted
RBZ Jewellers Ltd. has also highlighted a few risks or weaknesses that can impede its sustained growth. They include:
- The company has no exclusive supply contracts with gold suppliers. Any disruption in the supply chain can directly impact its business
- The company’s skilled artisans and jewellery designers have played a major role in its success. Its inability to retain them may lead to a loss of business
- The company has to fulfil extensive statutory and regulatory requirements of the government
- The manufacturing facility and showrooms are concentrated in Ahmedabad, Gujarat. Any unfavourable developments in this region could harm the business
- The company has contingent liabilities of approximately Rs. 500 lakhs
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Core Financials of the Company
The company’s revenue from operations and profit after tax have more than doubled in the last two financial years. The company’s net worth grew steadily from Rs. 56 crores in FY21 to Rs. 92 crores in FY23. The Return on Equity (ROE) for FY23 stood at an impressive 24%. Check the table below for the complete financials of RBZ Jewellers Ltd. for the last three financial years:
*Amount in Crores
Source – RHP dates 12 December on the SEBI website
Details of the IPO
As of 20 December 2023, RBZ Jewellers IPO is subscribed 13.15 times in the retail category and 7.16 times overall. The table below illustrates the IPO details:
The final word
The financials and valuation of the RBZ Jewellers IPO paint a positive picture. On Wednesday, 20 December 2023, the shares were attracting a GMP of Rs. 30 in the unlisted market, which means you can expect a listing gain of around 30%. But consider your risk appetite and other crucial factors before making a final investment decision.
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