RBZ Jewelers Limited is looking to make its mark on the financial world with an initial public offering (IPO) to raise funds for its expansion plans. The IPO is a book-build issue of Rs 100 crore, with subscriptions commencing on December 19, 2023 and closing on December 21, 2023. The company aims to list on both BSE and NSE, with the tentative listing date set for Wednesday, December. 27, 2023.
About RBZ Jewelers Limited
Established in April 2008, RBZ Jewelers Limited is a prominent Indian gold jewelery manufacturer specializing in antique designs.
The company’s product portfolio includes a wide range of antique gold jewelery featuring jadau, meena and kundan pieces. RBZ Jewelers operates in both wholesale and retail sectors and its retail showroom is branded as ‘Harit Zaveri’.
The company holds a prominent position in Ahmedabad and caters to reputed national, regional and local family jewelers across 19 states and 72 cities in India.
RBZ Jewelers IPO Details
| IPO date | The IPO will begin on December 19, 2023 and close on December 21, 2023 |
| IPO listing date | December 27, 2023 |
| Type of problem | Book Built Issue IPO |
| face value | 10 rupees per share |
| IPO price range | 95 rupees to 100 rupees per share |
| lot size | 150 shares |
| Exhibition location | BSE and NSE |
| Total issue size | Rs. 10 billion |
Purpose of RBZ Jewelers IPO
RBZ Jewelers aims to raise Rs 100 crore through the IPO and the net proceeds will be used for working capital requirements and general corporate purposes.
financial insights
RBZ Jewelers has shown steady growth in financial performance.
The revised financial information shows a 14.69% increase in revenue and a significant 55.03% increase in profit after tax from March 31, 2022 to March 31, 2023.
The company’s financial health is reflected in its key performance indicators, with a market capitalization of Rs 400 and a price-to-earnings ratio (PER) of 13.77.
IPO Price Evaluation of RBZ Jewelers IPO
- IPO price range is Rs 95-100 per share
- PER analysis
- Considering last year’s FY23 EPS of Rs 7.44, the P/E ratio is 13 times.
- Considering the weighted EPS of Rs 5.84 over the last three years, the P/E ratio is 17x.
- Comparison with listed peers
- Titan Company is trading at a P/E ratio of 93x (highest)
- Shapri Gold Ornaments are trading at a P/E ratio of 15x (lowest)
- Industry average P/E is 54x
- Therefore, the IPO price range of 13x to 17x P/E is perfectly priced.
Positive factors for investing in RBZ Jewelers IPO
RBZ Jewelers boasts of several strengths that give it an advantageous position in the market. These include organized manufacturing under one roof, a geographically diverse customer mix, a focus on design and innovation, and a brand built on trust, transparency, and innovation. .
An experienced promoter and a competent senior management team further strengthen the company’s profile.
RBZ Jewelers IPO Risk Factors
RBZ Jewelers offers a promising investment opportunity, but potential risks should be considered.
These include the need for significant working capital, the challenge of responding to changes in demand and market trends, dependence on a small number of suppliers of raw materials, and the importance of maintaining and developing the brands ‘RBZ Jewelers’ and ‘Harit Zaveri’. This includes gender, etc.
RBZ Jewelers IPO – Should you invest?
RBZ Jewelers Limited’s IPO offers investors an exciting opportunity to be part of an established player in the Indian gold jewelery market. With solid financial performance, strategic objectives and a strong market position, the company is poised for growth.
The allocation is expected to close on Friday, December 22, 2023, and trading is expected to commence on Wednesday, December 27, 2023. Arihant Capital Markets Ltd. is the book running lead manager and BigShare Services Private Limited is the registrar for the issue. For more information, investors should visit: RBZ Jewelers IPO RHP.
IPO price is fully priced.
Investors should carefully evaluate both the benefits and risks before investing in this IPO.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
