RBZ Jewellers, an antique gold jewellery manufacturer, unveiled its Initial Public Offering (IPO) on Tuesday, December 19. The same is valued at ₹100 crore. The IPO, consisting of a fresh issue of one crore equity shares and no offer-for-sale component, will conclude on December 21, 2023.
With a price band set between ₹95 and ₹100 per share, RBZ Jewellers aims to raise ₹100 crore, with a strategic allocation of 35% for qualified institutional buyers and retail investors each.
High net-worth individuals (non-institutional investors) are allocated 30% of the offering.
More on IPO
The primary objective behind this IPO is to fulfil working capital requirements amounting to ₹80.75 crore. Additionally, up to 25% of the gross proceeds will be directed towards general corporate purposes.
Investors are allowed to bid for a minimum of 150 equity shares, with multiples of 150 thereafter. Retail investors can engage with an investment starting at ₹14,250 (lower price band) and ₹15,000 (upper end).
Leading the book-running management of the IPO is Arihant Capital Markets, with Bigshare Services acting as the registrar to the offer.
RBZ Jewellers is slated for a dual listing on the BSE and the National Stock Exchange (NSE), tentatively scheduled for Wednesday, December 27, 2023.
About the company
Having a history of over 15 years in the industry, RBZ Jewellers specialises in crafting antique gold jewellery, including jadau, meena, and kundan work, retailed across wholesale and retail platforms.
Should one subscribe?
Analysts' recommendations diverge concerning the IPO.
Stoxbox views the issue as fairly valued, citing a P/E of 13.4x based on FY23 earnings, and therefore recommends a subscribe rating for potential investors.
Swastika Investmart urges caution due to potential risks. While acknowledging RBZ Jewellers' consistent financial growth, they highlight vulnerabilities such as gold price volatility and substantial reliance on a limited clientele.
Consequently, they advise this IPO primarily for high-risk investors.
Investors are advised to conduct thorough due diligence, considering the company's growth trajectory against identified risks before making investment decisions.
(Edited by : Amrita)
First Published: Dec 19, 2023 10:31 AM IST
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