RBZ Jewellers IPO Day 3: What GMP, subscription status signal as bidding ends in few hours

RBZ Jewellers IPO: The initial public offering (IPO) of RBZ Jewellers Limited opened for subscription on 19th December 2023 and it will remain open till 21st December 2023. This means RBZ Jewellers IPO subscription will end today evening or in other words, investors have just one day in hand to apply for the RBZ Jewellers IPO. In two days of bidding, RBZ Jewellers IPO subscription status informs that the public issue has received strong response from investors.

In grey market, shares of RBZ Jewellers Limited are still looking strong. According to stock market observers, RBZ Jewellers shares are trading at a premium of ₹32 in grey market today.

RBZ Jewellers IPO GMP today

Market observers said that RBZ Jewellers IPO grey market premium (GMP) today is ₹32, which is unchanged from yesterday's GMP of ₹32. Observers said that RBZ Jewellers IPO GMP remained steady despite heavy sell off in secondary market on Wednesday, which is praiseworthy. They said that steady GMP signals strong conviction of investors in regard to the RBZ Jewellers IPO.

However, stock market experts maintained that GMP is not an ideal indicator of positive or negative conviction of investors as grey market is non regulated and completely speculative. They went on to add that one should scan financials of the company as it has direct connect with the fundamentals of the company.

RBZ Jewellers IPO subscription status

By 3:03 PM on day 3 of bidding, the public issue has been subscribed 13.56 times whereas its retail portion has been subscribed 21.70 times. The NII portion of the book build issue has been subscribed 7.21 times while QIB segment has received 6.80 times bids against its offer.

RBZ Jewellers IPO: Should you subscribe?

Giving subscribe tag to RBZ Jewellers IPO, Prathamesh Masdekar, Research Analyst at StoxBox said, "RBZ Jewellers has a track record of sustained consolidated revenue from operations, growing at a CAGR of 64.0% during FY21-23 period. Overall, the company’s diverse jewellery collections comprising different manufacturing techniques and varieties, a strong brand presence in the Indian jewellery industry, and a wide reach and presence across India have helped it to grow its business successfully. The issue is valued at a P/E of 13.4x on the upper price band based on FY23 earnings, which is fairly valued. We, therefore, recommend an “SUBSCRIBE” rating for the issue."

StoxBox expert went on to add that the company has more than 15 years of experience in the jewellery industry. They design and manufacture a wide range of antique bridal gold jewellery, consisting of Jadau, Meena, and Kundan, and sell them in wholesale and retail markets. They also process and supply Antique Bridal Gold Jewellery on a work basis to national retailers. Their wholesale customer base includes reputed national, regional, and local family jewellers spread across 20 states and 72 cities within India. RBZ also operates its retail showroom under the “Harit Zaveri” brand and is an established player in Ahmedabad. They also export their jewellery to the Middle East region. They manufacture operations from a well equipped, modern facility in Ahmedabad, Gujarat, with advanced casting, laser, and 3-D printing technologies.

Advising investors to apply for the IPO for listing gains only, Arun Kejriwal, Founder at Kejwiral Research and Investment Services said, "The issue is small in size but priced at higher valuations. As it will remain in 'Trade to Trade' post listing, it is expected to emerge as circuit to circuit stocks after making debut on Dalal Street. So, my advice to investors is to apply for listing gains only."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.