RBZ Jewellers Limited is coming up with an IPO to issue 10 lakh new equity shares to the public. The company will utilize the raised funds to fund the company’s working capital requirements and general corporate purposes.
RBZ Jewellers Limited IPO – Important Details
| RBZ Jewellers Limited IPO Date | December 19, 2023 to December 21, 2023 |
| RBZ Jewellers Limited IPO Listing Date | December 27, 2023 |
| RBZ Jewellers Limited IPO Price | INR 95 to 100 per share |
| RBZ Jewellers Limited IPO Lot Size | 150 Shares |
| RBZ Jewellers Limited IPO Total Issue Size | INR 100.00 crore |
| RBZ Jewellers Limited IPO Basis of Allotment | December 22, 2023 |
| RBZ Jewellers Limited IPO Initiation of Refunds | December 26, 2023 |
| RBZ Jewellers Limited IPO Credit of Shares to Demat | December 26, 2023 |
| RBZ Jewellers Limited IPO Issue Type | Book Built Issue IPO |
| RBZ Jewellers Limited IPO Listing At | BSE, NSE |
RBZ Jewellers IPO – Company Profile
RBZ Jewellers, a prominent Indian gold jewelry manufacturer with over 15 years of history, specializes in Antique Gold Jewellery, including jadau, Meena, and Kundan work. They supply to national retailers, operate the “Harit Zaveri” retail showroom in Ahmedabad, and export to the Middle East. Manufacturing takes place in a modern facility located in Ahmedabad, Gujarat. The facility has advanced casting, laser, and 3-D printing technologies.
RBZ Jewellers operates a state-of-the-art gold jewelry manufacturing facility on Sarkhej Gandhinagar Highway, Ahmedabad, Gujarat, spanning 23,966 sq. ft. The retail showroom, covering 11,667 sq. ft. in the Satellite area, Ahmedabad, is a mix of owned and leased space. The company began with only eight employees, but now the workforce has expanded to 185 employees, which includes 250 skilled artisans. RBZ Jewellers collaborates with external skilled artisans to meet market demands.
RBZ Jewellers excels in Antique Gold bridal jewelry, fusing traditional Indian art with contemporary design. Using precious stones, they emphasize design and innovation. Established in 2014, “Harit Zaveri Jewellers” prioritizes transparency. Marketing involves celebrity engagements, collaborations, active participation in exhibitions, and fostering customer relationships.
RBZ Jewellers IPO – Fundamental Analysis
RBZ Jewellers displayed substantial revenue growth, improved operational efficiency, and consistent profitability, with a positive trend in Return on Net Worth and Earnings Per Share. Moreover, the company maintained manageable debt levels and exhibited healthy financial ratios.
Revenue Growth:
RBZ Jewellers has shown consistent growth in revenue from ₹10,699.13 lakhs in 2021 to ₹28,792.78 lakhs in 2023, indicating a significant increase in sales over the years.
Equity and Liabilities:
Both equity and liabilities have increased, which reflects the company’s expansion and possibly increased reliance on external funds to support its growth.
Expenses and Profit After Tax (PAT):
Despite rising expenses, the company has managed to increase its Profit After Tax steadily from ₹974.82 lakhs in 2021 to ₹2,233.31 lakhs in 2023, indicating improved operational efficiency.
Return on Net Worth (RoNW):
RBZ Jewellers’ RoNW has shown a consistent positive trend, growing from 17.55% in 2021 to 24.15% in 2023, demonstrating the company’s ability to generate profits in relation to its net worth.
Earnings Per Share (EPS):
Diluted EPS has seen steady growth from ₹3.12 in 2021 to ₹7.44 in 2023, reflecting increased profitability per share.
Debt Equity Ratio:
The Debt Equity Ratio has shown fluctuations but has generally remained at manageable levels, indicating reasonable debt management by the company.
Financial Ratios (Current Ratio, Inventory Turnover Ratio):
RBZ Jewellers exhibits healthy liquidity, as seen in its consistent current ratio above 1. Inventory turnover ratio has improved, indicating more efficient management of inventory.
RBZ Jewellers IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 10,699.13 | 25,210.67 | 28,792.78 |
| Equity (₹ in lakhs) | 5,555.27 | 7,003.25 | 9,246.77 |
| Expenses (₹ in lakhs) | 9,432.81 | 23,291.27 | 25,985.92 |
| Profit and Loss After Tax (₹ in lakhs) | 974.82 | 1,440.57 | 2,233.31 |
| RoNW (%) | 17.55 | 20.57 | 24.15 |
| Diluted EPS only (₹) | 3.12 | 4.80 | 7.44 |
| Total Assets (in lakhs) | 12,373.53 | 15,403.17 | 20,684.00 |
| Total Liabilities (in lakhs) | 6,818.26 | 8,399.92 | 11,437.23 |
| NAV (in lakhs) | 133.18 | 175.08 | 30.82 |
| Debt Equity Ratio | 1.08 times | 0.92 times | 1.04 times |
| Current Ratio | 1.96 | 1.96 | 2.02 |
| Inventory Turnover` Ratio | 0.33 | 0.61 | 0.68 |
RBZ Jewellers Ltd IPO Peer Comparison
In the IPO peer comparison, RBZ Jewellers shows strong earnings with an EPS of ₹7.44, a robust RoNW of 24.15%, and a Net Asset Value (NAV) of ₹30.82 per share. Titan Company Limited has substantial income and a high P/E ratio, while Ashapuri Gold Ornament displays a considerably lower RoNW.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| RBZ Jewellers Limited | 28,962.62 | 10 | NA | 7.44 | 7.44 | 24.15 | 30.82 |
| Thangamayil Jewellery Ltd | 3,15,590.00 | 10 | 23.31 | 58.13 | 58.13 | 20.50 | 283.38 |
| DP Abhushan Limited | 1,97,535.00 | 10 | 13.91 | 20.33 | 20.33 | 25.02 | 81.36 |
| Titan Company Limited | 40,88,300.00 | 1 | 77.12 | 36.31 | 36.61 | 27.50 | 133.49 |
| Ashapuri Gold Ornament Limited | 15,813.69 | 10 | 109.86 | 0.71 | 0.71 | 2.16 | 33.01 |
| Sky Gold Limited | 1,15,475.63 | 10 | 23.99 | 17.32 | 17.32 | 18.96 | 91.34 |
RBZ Jewellers Ltd IPO Objective
RBZ Jewellers will utilize funds to finance working capital needs for wholesale and retail operations, ensuring smooth order fulfillment and production cycles. The balance funds will also support general corporate purposes covering various business aspects.
- Funding working capital requirements of the company: RBZ Jewellers’ business involves wholesale and retail sales of jewelry products. In wholesale, they have fulfilled confirmed orders with payment upon supply within an agreed credit period, requiring substantial working capital. Working capital is essential for production and showroom inventory in retail to facilitate sales, and the company proposes to utilize INR 807.5 crores for the said purpose.
- General Corporate Purposes: The Company plans to deploy the balance funds towards the general corporate goal, which is not limited to meeting expenses incurred in the ordinary course of business, such as capital expenditure, acquiring premises, enhancing technology infrastructure, strategic initiatives, addressing difficulties, and any other specified or unforeseen purpose.
RBZ Jewellers Ltd IPO Risks And Challenges
RBZ Jewellers’ success hinges on agile design teams adapting to diverse consumer trends. Revenue from retail, wholesale, and job work services requires balancing margins and working capital. Dependency on prior-order manufacturing for key customers poses retention risks and potential adverse impacts on business and financial conditions.
- RBZ Jewellers’ success depends on the design team’s agility in predicting and adapting to diverse consumer trends across India. Factors like metal and gemstone preferences, industry promotions, and customer attitudes impact sales. Failure to respond promptly may adversely affect our business, financial condition, and the results of operations.
- Their revenue comes from retail, wholesale, and job work services with varying margins and working capital needs. Maintaining balance is crucial, and uncertainties exist regarding future volume, working capital satisfaction, and potential competition, leading to loss of business.
- Their revenue heavily relies on prior-order manufacturing for critical customers, fostering strong relationships. Lack of long-term contracts poses risks to customer retention. While contracts specify terms, default uncertainties exist. Key customers’ declining business could adversely impact their overall business and financial condition.
RBZ Jewellers IPO – Industry & Market Potential
The expansion of the organized retail market in India is primarily attributable to a shift in customer behavior. Increased affluence, changing lifestyles, and favorable demographic patterns have all contributed to the shift in consumer behavior. Consumers now prefer to shop at a location where they can enjoy food, entertainment, and shopping all in one spot. This has supported the growth of the organized Indian retail market.
The Indian Gems and Jewellery (G&J) sector, historically fragmented, has witnessed a structural shift with players focusing on branded jewelry, tapping into the underpenetrated market. Increased consumer inclination towards engraved jewelry, especially in urban areas, presents significant growth opportunities.
Retailers often source from wholesalers or outsource manufacturing to workers in the gold jewelry sector. Large retail chains favor wholesalers for diverse designs, allowing retailers to focus on retail. Urban India relies more on wholesale procurement, while rural areas involve job workers using retailer-procured gold for specific designs.
RBZ Jewellers Ltd IPO – Type of Offer
RBZ Jewellers Limited is preparing to launch an IPO comprising fresh issues of 10 lakh equity shares.
RBZ Jewellers Ltd IPO Offer Size
RBZ Jewellers Limited is set to launch an Initial Public Offering (IPO), wherein the company plans to release 1 million new equity shares to the public. The proceeds from this offering will be deployed to support the company’s working capital needs and for general corporate purposes.
RBZ Jewellers Ltd IPO Allotment Structure
RBZ Jewellers Limited’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for an RBZ Jewellers Ltd IPO?
To apply for the RBZ Jewellers Limited through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the RBZ Jewellers Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for RBZ Jewellers Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check RBZ Jewellers Limited IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the RBZ Jewellers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the RBZ Jewellers Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the RBZ Jewellers Limited IPO:
Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the RBZ Jewellers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
RBZ Jewellers Limited IPO Offer Registrar
The registrar for the RBZ Jewellers Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S6-2, 6th floor,
Pinnacle Business Park,
Next to Ahura Centre,
Mahakali Caves Road,
Andheri East, Mumbai-400093
Telephone: +91-22-62638200
Email: [email protected]
Website: www.bigshareonline.com
RBZ Jewellers Limited IPO FAQs
1. What is the allotment date of RBZ Jewellers Limited’s IPO?
The allotment date of the RBZ Jewellers Limited’s IPO is December 22, 2023.
2. What is the price band of RBZ Jewellers Limited’s IPO?
The price band of the RBZ Jewellers Limited’s IPO is INR 95-100 per share.
3. What is the size of RBZ Jewellers Limited’s IPO?
RBZ Jewellers Limited is set to launch an Initial Public Offering (IPO) involving issuing 1 million new equity shares to the public. The proceeds from this offering will be allocated towards meeting the company’s working capital needs and addressing general corporate requirements.
What is the listing date of RBZ Jewellers Limited’s IPO?
The listing date of the RBZ Jewellers Limited’s IPO is December 27, 2023.
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