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Business News/ Markets / Ipo/  RBZ Jewellers' 100 cr IPO opens today: Key things to know before subscribing
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RBZ Jewellers' ₹100 cr IPO opens today: Key things to know before subscribing

The ₹100 crore initial public offer (IPO) of RBZ Jewellers opened for subscription today, December 19, 2023, and will end on December 21. The company has set a price band of ₹95-100 per share for the issue. Here are the key things to know about the issue before subscribing to it.

The ₹100 crore initial public offer (IPO) of RBZ Jewellers opened for subscription today, December 19, 2023, and will end on December 21. The company has set a price band of ₹95-100 per share for the issue. Here are the key things to know about the issue before subscribing to it.Premium
The 100 crore initial public offer (IPO) of RBZ Jewellers opened for subscription today, December 19, 2023, and will end on December 21. The company has set a price band of 95-100 per share for the issue. Here are the key things to know about the issue before subscribing to it.

The 100 crore initial public offer (IPO) of RBZ Jewellers opened for subscription today, December 19, 2023, and will end on December 21. The company has set a price band of 95-100 per share for the issue. This is one of the last IPOs of 2023.

Here are the key things to know about the issue before subscribing to it.

About the issue: The IPO is completely a fresh issue of 1 crore shares. There is no offer for sale (OFS) segment in the public offer.

Anchor Investors: Ahead of the launch, the company has raised 21 crore from anchor investors. The company allocated 21 lakh shares at 100 per share to three anchor investors - PGIM India Equity Growth Opportunities Fund, BOFA Securities Europe SA, and Negen Undiscovered Value Fund.

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Reservation: RBZ Jewellers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Objective: 80.75 crore on meeting working capital requirements. Additionally, up to 25 percent of the gross proceeds will be allocated for general corporate purposes.

Lot Size: Investors can bid for a minimum of 150 equity shares and in multiples of 150 thereafter. Hence, at the upper price band, retail investors will have to invest 15,000 for one lot.

Subscription Status: On the first day of bidding itself, the issue has been fully subscribed. At 2:40 pm, it was subscribed 1.54 times. It has received bids for 1.21 crore shares as against 79 lakh shares on offer. The retail investor portion was subscribed the most, 3.14 times followed by the Non Institutional Investors' (NII) quota, which was bid 39 percent. However, the Qualified Institutional Buyers (QIBs) part is yet to be booked.

Also Read: Inox India IPO allotment to be out soon; here's how to check allotment status

GMP: The company's shares in the grey market continued trading at 0, indicating no premium versus IPO price at listing. It has been the same since it started trading in the grey market.

However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.

About the firm: Established in April 2008, RBZ Jewellers specializes in crafting antique gold jewelry. It is a well-known company in Ahmedabad, Gujarat, and runs its retail store under the "Harit Zaveri" brand. The company is strategically looking to establish a strong presence in Southern India, which accounts for 41 percent of the total jewellery demand in the country. It occupies 10,417 square feet of the showroom, while the remaining 1,250 square feet are leased.

Also Read: India Shelter IPO allotment declared: Latest GMP, how to check status online

Financials: The RBZ Jewellers saw a 14.21 percent increase in operating revenue to 289 crore in FY23 from 252 crore in FY22. Meanwhile, its profit after taxes rose 55 percent to 22 crore in FY23 from 14 crore in FY22.

For the six months ending September 30, 2023, the firm posted a revenue of 125.46 crore and a profit after tax of 12.09 crore.

Book Running Managers: Arihant Capital Markets will lead the book-running management of the IPO, and Bigshare Services will act as the registrar to the offer.

Important dates: Tentatively, RBZ Jewellers' IPO basis of allotment of shares will be finalised on Friday, December 22 and the company will initiate refunds on Tuesday, December 26, while the shares will be credited to the Demat account of allottees on the same day following the refund. It is scheduled to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) with the tentative listing date set for Wednesday, December 27, 2023.

Also Read: Suraj Estate IPO day 2 subscription status: Issue subscribed 127% at 12 PM

Should you subscribe?

Anand Rathi: Subscribe for long-term

The company has an extensive coverage and footprint span across India in the jewellery industry. Also, the company offers various designs and innovations across its product range. At the upper price band, the company is valued at a P/E of 17.9X with a market cap of 4000 million post issue of equity shares. We believe that valuation of the company is fairly priced and recommend a “Subscribe-Long Term" rating to the IPO.

Swastika Investmart: Subscribe for high-risk investors

The IPO valuation of 13.4x P/E appears fair on the surface, but the aforementioned risks necessitate a cautious approach. We recommend this IPO only for high-risk investors.

RBZ Jewellers has consistently increased its revenue, as evidenced by both its top and bottom line numbers. Potential investors should, however, carefully weigh the risks associated with the venture, including fluctuations in the price of gold, a heavy reliance on a small number of customers, the lack of formal agreements with internal artisans, and fierce industry competition.

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

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Published: 19 Dec 2023, 02:57 PM IST
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