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RBZ Jewellers LTD IPO: Review, Valuation, Date & GMP
Table of Contents
- RBZ Jewellers Limited IPO - Complete Overview
- RBZ Jewellers Limited IPO Overview
- Detailed Video
- Company Financial
- The objective of the Issue
- Promoters and Management of RBZ Jewellers Limited IPO
- RBZ Jewellers Limited IPO Lead Managers
- Peers of RBZ Jewellers Limited IPO
- Evaluation
- Dividend Policy
- IPO's Strengths
- IPO's Weaknesses
- IPO GMP Today
- Conclusion
RBZ Jewellers Limited IPO - Complete Overview
Established in April 2008, RBZ Jewellers is an India-based gold jewellery manufacturer specializing in crafting antique designs. The company's expertise lies in designing and producing a diverse array of antique gold jewellery, encompassing jadau, meena, and kundan work, available through both wholesale and retail channels.
In a bid to raise Rs 100 crore, RBZ Jewellers is set to launch its IPO, featuring a fresh share sale of 1,00,00,000 equity shares. The net proceeds from this offering will be channelled towards meeting working capital requirements and general corporate purposes.
RBZ Jewellers extends its reach through a retail showroom operating under the brand name 'Harit Zaveri,' solidifying its position as a leading player in Ahmedabad. The company boasts a robust wholesale customer base, serving esteemed national, regional, and local family jewellers across 19 states and 72 cities in India. The heart of RBZ Jewellers' operations lies in its well-equipped manufacturing facility located in Ahmedabad.
RBZ Jewellers Limited IPO Overview
RBZ Jewellers Limited IPO date is slated to be open for subscription from December 19, 2023, to December 21, 2023. This BSE, NSE IPO follows a Book Built Issue IPO.
RBZ Jewellers Limited IPO price is fixed at Rs. 95 to Rs. 100 per share. The upcoming BSE, NSE IPO will be listed on December 27, 2023.
The total issue size of this IPO amounts to Rs. 100.00 CR. Within this total issue, 35% is issued to retail investors, and 15% is issued to other investors.
Detailed Video
RBZ Jewellers Limited IPO timetable (Tentative)
Events |
Date |
IPO Opening Date |
19 December 2023 |
IPO Closing Date |
21 December 2023 |
IPO Allotment Date |
22 December 2023 |
Refund initiation |
26 December 2023 |
IPO Listing Date |
27 December 2023 |
RBZ Jewellers Limited IPO Details
RBZ Jewellers Limited IPO, from December 19 to 21, 2023, offers shares at Rs. 95-100 each, with a lot size of 150 shares priced at Rs. 15,000. The total issue size is 10,000,000 shares, aiming to raise Rs. 100.00 Cr.
IPO opening & closing date |
19 December to 21 December 2023 |
Face value |
Rs. 10 per share |
Issue Price |
Rs. 95 to Rs. 100 per share |
Lot Size |
150 Shares |
Price of 1 lot |
Rs.15,000 |
Total Issue Size |
10,000,000 shares (aggregating up to Rs. 100.00 Cr) |
Offer for sale |
shares (aggregating up to Rs. Cr) |
Fresh issue |
10,000,000 shares (aggregating up to Rs. 100.00 Cr) |
Listing at |
BSE, NSE |
Issue Type |
Book Built Issue IPO |
Registrar |
Bigshare Services Pvt Ltd |
RBZ Jewellers Limited IPO Lot Details
Application |
Lot |
Shares |
Minimum Lot Investment (Retail) |
1 lot |
150 |
Maximum Lot Investment (Retail) |
13 lot |
1950 |
Minimum Lot Investment (HNI) |
14 lot |
2,100 |
RBZ Jewellers Limited IPO Reservation
QIB Shares Offered |
50% |
Retail Shares Offered |
35% |
Other Shares Offered |
15% |
Company Financial
As of September 30, FY23, RBZ Jewellers reported total assets of INR 234.76 Crore, total revenue of INR 125.52 Crore, and a net profit of INR 12.09 Crore. The net worth was INR 104.57 Crore, with total borrowings of INR 101.84 Crore.
(Amount in Crore)
Period |
Sep 30 FY 23 |
Mar 31 FY 23 |
Mar 31 FY 22 |
Total Assets |
234.76 |
206.84 |
154.03 |
Total Revenue |
125.52 |
289.63 |
252.53 |
PAT |
12.09 |
22.33 |
14.41 |
Net worth |
104.57 |
92.47 |
70.03 |
Reserve & Surplus |
74.02 |
61.93 |
65.60 |
Total Borrowings |
101.84 |
95.79 |
59.71 |
REVENUE DISTRIBUTION PRODUCT WISE
Most of our earnings, around 88-90%, come from selling and processing gold jewellery. Any issues with getting gold or selling jewellery could hurt our business and finances.
( in % age)
Particulars |
Sep 30 F.Y. 23 |
Mar 31 F.Y. 23 |
Mar 31 F.Y. 22 |
Gold jewellery |
88.26% |
87.96% |
90.40% |
Diamond, and precious stone |
3.76% |
5.24% |
4.27% |
Bars and Coins of Gold and Silver |
7.98% |
6.81% |
5.33% |
Total |
100.00% |
100.00% |
100.00% |
Revenue By operations
RBZ Jewellers' revenue from operations grew to INR 12,545.68 Lakhs (Sep 30 FY23) from INR 25,210.67 Lakhs (Mar 31 FY22). The total revenue, including other income, reached INR 12,551.91 Lakhs (Sep 30 FY23) compared to INR 25,252.66 Lakhs (Mar 31 FY22).
(amount in Lakhs)
Particulars |
Sep 30 FY 23 |
Mar 31 FY 23 |
Mar 31 FY 22 |
Revenue from operations |
12,545.68 |
28,792.78 |
25,210.67 |
Other Operating Income |
6.23 |
169.84 |
41.99 |
Total Revenue from operations |
12,551.91 |
28,962.62 |
25,252.66 |
The objective of the Issue
The company intends to use the net proceeds for the following objectives.
-
Funding working capital requirements of the Company
-
General Corporate Purposes
Promoters and Management of RBZ Jewellers Limited IPO
1. Rajendrakumar Kantilal Zaveri
2. Harit Rajendrakumar Zaveri
Pre-issue Promoter Shareholding |
100% |
Post-issue Promoter Shareholding |
75% |
RBZ Jewellers Limited IPO Lead Managers
-
Arihant Capital Markets Ltd
Peers of RBZ Jewellers Limited IPO
RBZ Jewellers Limited demonstrates a RoNW of 24.15%, while its peers, such as Titan Company Limited, show a higher RoNW at 27.50%. Additionally, RBZ Jewellers has a P/E ratio of 13.45%, which is comparatively lower than Titan Company Limited's higher P/E ratio of 93.06%.
Name of the Company |
Face value (Rs. per share) |
RoNW |
P/ E |
EPS (Basic) (Rs.) |
RBZ Jewellers Limited |
10 |
24.15 |
13.45 |
7.44 |
Thangamayil Jewellery Ltd |
10 |
20.50 |
24.78 |
58.13 |
D P Abhushan Limited |
10 |
25.02 |
28.46 |
20.33 |
Titan Company Limited |
1 |
27.50 |
93.06 |
36.61 |
Ashapuri Gold Ornament Limited |
10 |
2.16 |
14.96 |
0.71 |
Sky Gold Limited |
10 |
18.96 |
49.46 |
17.32 |
Kalyan Jewellers India Limited |
10 |
11.88 |
78.33 |
4.20 |
Senco Gold Limited |
10 |
13.04 |
32.50 |
22.87 |
Evaluation
The IPO is priced in the range of Rs 95 to Rs. 100 per share.
Evaluation of P/E Ratio:
- Considering the FY23 EPS of Rs 7.44 from the last year, the resulting P/E ratio is 13.45x.
- Taking into account the weighted EPS of Rs 5.84 for the last three years, the P/E ratio amounts to 17.13x.
Comparative Analysis with Listed Peers
- Titan Company Limited has a P/E ratio of 93.06x (the highest).
- Ashapuri Gold Ornament Limited has a P/E ratio of 16x (the lowest).
- The industry's average P/E is 45.94x.
Therefore, the IPO Price range at a P/E of 13.45x to 17.13x is considered slightly overvalued.
Dividend Policy
No dividends were declared in the last three years, and the Board may retain earnings for long-term stakeholder value, using different payment methods. Interim dividends can be declared between annual general meetings as required.
IPO's Strengths
1. Efficient Manufacturing Setup: The integrated manufacturing facility, equipped with advanced technology, ensures streamlined operations, quality control, and cost-effectiveness.
2. Extensive Client Base: Operating in 20 states and 72 cities, strong ties with national and regional retailers, including Titan Company Ltd. and Malabar Gold Pvt. Ltd., provide insights into diverse customer preferences and market trends.
3. Innovation in Design: Their commitment to unique jewelry designs, facilitated by an in-house design team and skilled artisans, enables catering to different age groups and customer preferences across various price points.
4. Reputed Brand: Holding approximately 1% of India's organized wholesale gold jewelry market, they've earned recognition and awards for quality and design, focusing on trust, transparency, and innovation.
5. Effective Systems and Procedures: Rigorous systems govern order management, quality control, and risk mitigation. Adherence to hallmarking processes and ethical business practices enhances transparency and accountability.
6. Experienced Leadership: Promoters Rajendrakumar Kantilal Zaveri and Harit Rajendrakumar Zaveri bring over 35 and 17 years of jewelry industry experience, fostering significant growth and strong relationships.
7. Experienced Board and Management Team: Supported by experienced independent directors, the Board and management ensure strategic planning and effective operations, contributing to overall success.
IPO's Weaknesses
1. Data Security Risks: Potential failure to secure customer data may disrupt operations and harm reputation, especially concerning credit card and personal information collected at retail showrooms.
2. Intense Market Competition: Competing with both organized and local jewellers requires continuous efforts in branding, product range, and customer service. Established trust by competitors in local markets poses challenges.
3. Financial Exposure from Guarantees: Personal guarantees for loan facilities by Promoters and the Promoter Group expose the company to financial risks. Invocation may necessitate alternative guarantees, impacting financial conditions.
4. Dependency on Gold Prices: Heavy reliance on gold makes the company vulnerable to price fluctuations influenced by various factors, affecting customer demand and overall financial health.
5. Hedging Vulnerabilities: Lack of specific hedging policies for gold inventory increases susceptibility to losses from gold price fluctuations, posing risks to financial conditions.
6. Currency and Export Risks: Exposure to U.S. dollar rates and potential increases in raw material costs due to unfavourable currency exchange rates may impact sales and operations.
7. Market Surveillance Measures: Post-listing, the company may face surveillance measures like ASM and GSM, leading to increased volatility, low trading volumes, and trading restrictions, impacting market price and liquidity of equity shares.
IPO GMP Today
The Latest GMP of RBZ Jewellers Limited IPO is Rs.0
Conclusion
RBZ Jewellers Limited, a leading name in Indian gold jewellery, is launching its IPO from December 19 to 21, 2023, aiming to raise Rs. 100 crore. Specialising in antique designs, the IPO offers 1,00,00,000 equity shares at Rs. 95 to Rs. 100 per share. The funds will support working capital and general corporate needs. Despite strengths, challenges include data security risks and market competition. Investors should assess carefully. The IPO listed on BSE and NSE on December 27, 2023.
Finowings IPO Analysis
Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO.
You must consult your financial advisor before making any financial decisions.
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Frequently Asked Questions
The RBZ Jewellers Limited IPO is set to open for subscription on December 19, 2023, and close on December 21, 2023.
The IPO price is fixed at Rs. 95 to Rs. 100 per share, with a lot size of 150 shares.
The total issue size is Rs. 100.00 CR, with 35% issued to retail investors. The funds raised will be used for working capital requirements and general corporate purposes.
The IPO is expected to be listed on December 27, 2023.
RBZ Jewellers Limited boasts strengths such as an efficient manufacturing setup, an extensive client base, innovative design, and a reputed brand. However, it faces challenges like data security risks, market competition, and financial exposure from guarantees.
As of September 30, FY23, RBZ Jewellers' total assets are Rs. 234.76 CR, with revenue mainly coming from gold jewellery (88-90%). Financials include a net worth of Rs. 104.57 CR and total borrowings of Rs. 101.84 CR.