RBZ Jewellers IPO enatils to raise Rs 100.00 crores. The issue is entirely a fresh issue of 1 crore shares. Ahmedabad based RBZ Jewellers operates in the gems and jewellery industry on a wholesale, retail and job work basis. RBZ Jewellers manufactures gold jewellery in India, specializing in antique bridal gold jewellery and distribute to reputable nation-wide retailers and significant regional players in India.
IPO opens
Dec 19, 2023
IPO Closes
Dec 21, 2023
IPO Size (Rs.)
₹100.00 Cr
IPO Size (shares)
10,000,000 shares
Breakup
Fresh issue only
Face Value:
₹10
IPO Price in Rs :
₹95 to ₹100
Minimum Lot
150 Shares
Listing At
NSE , BSE
QIB Quota
~50%
NII Quota
15%
Retail Quota
~35%
Lead Manager
Arihant Capital Markets Ltd
Registrar
Bigshare Services
About RBZ Jewellers:
RBZ Jewellers is one of the leading organized manufacturers of gold jewellery in India, specializing in Antique Bridal Gold Jewellery.
They design and manufacture a wide range of Antique Bridal Gold Jewellery which consists of jadau, Meena and Kundan work and sell it on a wholesale and retail basis.
They also process and supply Antique Bridal Gold Jewellery on job work basis to national retailers. We hold approximately 1% of total organized wholesale gold jewellery market in India.
The Company also operates its retail showroom under the brand name “Harit Zaveri” and is an established player in Ahmedabad.
They offer jewellery for bridal, occasional and daily wear at various price range in their retail showroom.
Its customer base in wholesale business includes reputed national, regional and local family jewellers spread across 20 States and 72 cities within India.
It carries out manufacturing operations from a well-equipped and modern facility situated at Ahmedabad, Gujarat having advanced technologies in casting, laser and 3-D printing..
It had 189 employees on its payroll
Financials: RBZ Jewellers
Particulars / Rs. crore
2023 (06)
2023 (12)
2022(12)
2021(12)
Revenue from Operations
125.46
287.93
252.11
106.99
Revenue Growth (%)
–
14.21%
135.61%
–
EBITDA
21.83
39.46
27.19
21.16
EBITDA Margin (%)
17.40%
13.71%
10.79%
19.78%
Profit before Tax
16.24
29.77
19.61
13.38
Net Profit for the period
12.09
22.33
14.41
9.75
Net Profit Margin (%)
9.64%
7.76%
5.71%
9.11%
Share Capital
30.00
30.00
4.00
4.00
Reserves
74.57
62.47
66.03
51.55
Net Worth
104.57
92.47
70.03
55.55
EPS – Basic & Diluted (₹)
4.03
7.44
4.80
3.12
RONW (%) as stated
11.57%
24.15%
20.57%
17.55%
Net Asset Value (₹)
34.86
30.82
175.08
133.18
Post issue Share Capital
40.00
FV
10.0
IPO price
100.0
EPS Fy23
5.6
PE Fy23
17.9
EPS Fy24 (annualized)
6.0
PE Fy24 (annualized)
16.5
Market cap in Lacs
400.0
Market cap / Sales
1.39
Anchor Book
RBZ Jewellers IPO: Salient Points
Promoter holding of 100%, will drop to 75% post the IPO.
RBZ Jewellers operates in the gems and jewellery industry on a wholesale, retail and job work basis.
In calendar year 2022, the market size of organized wholesale market in India was of ₹ 216 billion (~84 tonnes) and of the organized retail jewellery market in India was ₹ 1,500 to 1,600 billion
It also retails antique gold jewellery mainly through its ‘Harit Zaveri’ showroom in Ahmedabad.
It serves clients like Titan, Senco Gold, Malabar, Joyalukkas etc.
The company also exports its jewellery to the Middle East region.
Company proposes to utilize the Net Proceeds towards funding working capital requirements of the Company.
Peers: The company has shown Kalyan Jewellers, Senco Gold, Thangamayil Jewellery, D P Abhushan, Titan Co., Ashapuri Gold and Sky Gold as their listed peers. all of these are trading at a much higher PE.
RBZ Jewellers Limited’s revenue increased by 15% and profit after tax increased by 55% between the financial year ending with March 31, 2023 and March 31, 2022.
CRISIL Ratings has assigned CRISIL BBB-/Stable’ rating on the bank facilities of RBZ Jewellers.
Most of its 100 cr debt is on floating rate and banks lending to the company are Axis Bank Limited and IDBI Bank Limited
In general H2 is expected to be better for jewellery companies this fiscal due to festive season falling in H2.
RBZ Jewellers IPO is coming at PE of 17.9x (FY23) and 16.5x (FY24 annualized).
I intend to apply in RBZ Jewellers IPO. There is however good degree of risk due to market meltdown and large number of IPOs hitting the market leading to a glut situation and low grey market activity.
GMP as reported on social media has been around Rs. 5.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
