RBZ Jewellers IPO – A Sparkling Investment Opportunity?

RBZ Jewellers Limited is set to make its mark in the financial world with an Initial Public Offering (IPO) to raise capital for its expansion plans. The IPO, a book-built issue of Rs 100 crores, opens for subscription on December 19, 2023, and closes on December 21, 2023. The company aims to list on both BSE and NSE, with a tentative listing date on Wednesday, December 27, 2023.

About RBZ Jewellers Limited

Incorporated in April 2008, RBZ Jewellers Limited is a prominent gold jewellery manufacturer in India, specializing in antique designs.

The company’s product portfolio includes a wide range of antique gold jewellery featuring jadau, meena, and kundan work. RBZ Jewellers operates both in wholesale and retail segments, with its retail showroom branded as “Harit Zaveri.”

The company holds a significant position in Ahmedabad and caters to reputed national, regional, and local family jewellers across 19 states and 72 cities in India.

RBZ Jewellers IPO - Details and Review

RBZ Jewellers IPO Details

IPO Date IPO Opens on December 19, 2023 and closes on December 21, 2023
IPO Listing Date December 27, 2023
Issue Type Book Built Issue IPO
Face Value Rs 10 per equity share
IPO Price band Rs 95 to Rs 100 per equity share
Lot Size 150 Shares
Listing at BSE and NSE
Total Issue Size Rs. 100 Crores

Objectives of the RBZ Jewellers IPO

RBZ Jewellers aims to raise Rs 100.00 crores through the IPO, with the net proceeds designated for funding working capital requirements and general corporate purposes.

Financial Insights

RBZ Jewellers has demonstrated steady growth in its financial performance.

The restated financial information indicates a 14.69% increase in revenue and a substantial 55.03% rise in profit after tax between March 31, 2022, and March 31, 2023.

The company’s financial health is reflected in key performance indicators, with a market cap of Rs 400 Cr and a price-to-earnings (P/E) ratio of 13.77.

IPO Price Valuation of RBZ Jewellers IPO

  • The IPO price band is Rs 95 to 100 per share
  • P/E Ratio Analysis
    • If we consider the last year FY23 EPS of Rs 7.44, the P/E ratio works out to be 13x
    • If we consider last 3 years weighted EPS of Rs 5.84, the P/E ratio works out to be 17x
  • Comparison with listed peers
    • Titan Company trading at P/E 93x (Highest)
    • Ashapuri Gold Ornament is trading at P/E of 15x (Lowest)
    • Industry average P/E is 54x
  • Hence, the IPO Price band at P/E of 13x to 17x is fully priced

Positive Factors to invest in RBZ Jewellers IPO

RBZ Jewellers boasts several strengths that position it favorably in the market, including an organized manufacturing setup under one roof, a diverse client mix with a wide geographical spread, a focus on design and innovation, and a brand built on trust, transparency, and innovation.

The experienced promoters and a competent senior management team add further strength to the company’s profile.

Risk Factors in RBZ Jewellers IPO

While RBZ Jewellers presents a promising investment opportunity, potential risks should be considered.

These include the need for significant working capital, the challenge of responding to changes in demands and market trends, dependency on a few suppliers for raw materials, and the critical importance of maintaining and developing the brand “RBZ Jewellers” and “Harit Zaveri.”

RBZ Jewellers IPO – Should you invest?

RBZ Jewellers Limited’s IPO provides investors with a glittering opportunity to be part of a well-established player in the Indian gold jewellery market. With a robust financial track record, strategic objectives, and a solid market position, the company is poised for growth.

The allotment is expected to be finalized on Friday, December 22, 2023, with trading commencing on Wednesday, December 27, 2023. Arihant Capital Markets Ltd is the book running lead manager, and Bigshare Services Pvt Ltd is the registrar for the issue. For detailed information, investors need to refer to RBZ Jewellers IPO RHP.

The IPO Price is fully priced.

Investors should carefully assess both the positives and risks and can invest in this IPO.

Suresh KP

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