RBZ Jewellers IPO - Investment Rationale, Financials, Key Strategies, Risks: Anand Rathi

Anand Rathi's IPO Report

RBZ Jewellers Ltd. launched its initial public offering today and the bid will conclude on Dec. 21. The designer and manufacture of a wide range of antique bridal gold jeweler has fixed a price band in the range of Rs 95 to Rs 100 Apiece. The minimum order lot is 150.

The company plans to raise up to Rs 100 crore via a fresh issue.

Objects of the Issue

• Funding working capital requirements of the company.

• General corporate purposes.

Valuation

RBZ Jewellers has an extensive coverage and footprint span across India in the jewelry industry. Also, the company offers various designs and innovations across its product range.

At the upper price band company is valued at price/earning of 17.9 times with a market cap of Rs 4000 million post issue of equity shares.

We believe that valuations of the company is fairly priced and recommend a 'Subscribe-Long Term' rating to the IPO.

Click on the attachment to read the full IPO report:

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