RBZ Jewellers IPO: All You Need To Know
RBZ Jewellers, the maker of jewellery for brands like Titan and Malabar Gold, plans to raise up to Rs 100 crore via a fresh issue.
RBZ Jewellers Ltd., the maker of gold jewellery for brands like Titan Co. and Malabar Gold Pvt., launched its initial public offering on Dec. 19 to raise up to Rs 100 crore via a fresh issue.
The price band is fixed at Rs 95–100 per share. The company raised Rs 21 crore from anchor investors on Dec. 18 ahead of IPO.
Of the total IPO size, 50% is reserved for qualified institutional buyers, 15% for retail individual investors, and the remaining 35% is to be allotted to non-institutional investors.
Issue Details
Issue opens: Dec. 19.
Issue closes: Dec. 21.
Total issue size: Rs 100 crore.
Face value: Rs 10 apiece.
Fixed price band: Rs 95–100 per share.
Minimum lot size: 150 shares.
Listing: NSE and BSE.
Use Of Proceeds
The net proceeds from the issue will be utilised towards the following:
Funding working capital requirements of the company.
General corporate purposes.
Around Rs 80.75 crore will be used for funding working capital requirements.
Business
Incorporated in 2008, RBZ Jewellers is an India-based gold jewellery manufacturer. The company designs and makes a wide range of antique gold jewellery comprising jadau, meena and kundan work and sells it on wholesale and retail basis.
The company's wholesale customer base includes national, regional and local family jewellers, across 19 states and 72 cities in India. The company also operates its retail showroom under its brand, Harit Zaveri, in Gujarat's Ahmedabad.
RBZ Jewellers' manufacturing facility in Ahmedabad has an area of 23,966 sq. ft and is permitted a capacity of 250 artisans. The company's major customers by volume in FY23 included Titan Co., Malabar Gold Pvt., Joyalukkas India Ltd., Senco Gold Ltd., among others.
Risk Factors
The company requires significant amount of working capital for continued growth. As on Sept. 30, the firm had a total sanctioned limit of Rs 79.90 crore towards working capital loan facilities.
If the company is unable to respond to changes in demands and market trends and expand its product offering in a diversified manner, it may have an impact of the business and its financials.
The company does not currently have exclusive or fixed supply arrangements with any of its gold suppliers. It is significantly dependent on a few suppliers. It procures majority of raw material (gold) from its top 10 suppliers. In the six months period ended Sept. 30, 58.37% of the total raw material needs relating to gold came from the top 10 suppliers.
