RBZ Jewellers witnessed robust demand for its initial public offering (IPO) on the final day of bidding, December 21. The subscription rate stood at an impressive 8.4 times, as investors submitted bids for 6.6 crore shares against the company’s offering size of 79 lakh shares.
Retail investors oversubscribed their allocated quota by a factor of 15.2, while high net-worth individuals opted for a 4.3 times oversubscription. In contrast, qualified institutional buyers secured only a modest 5 percent of the shares reserved for them.
The public offer of INR 100 crore, closing today, consists solely of fresh share issuances, without any offer-for-sale component. The price range for the issue was set at INR 95-100 per share, and the lot size is a minimum of 150 equity shares, with multiples thereafter in increments of 150.
In the public issue, qualified institutional buyers are allocated a reservation of 14 percent, while retail investors enjoy a 35 percent reservation. The remaining 30 percent is set aside for high net worth individuals (non-institutional investors).
The fresh proceeds, totaling INR 80.75 crore, are earmarked primarily for addressing working capital requirements. Additionally, up to 25 percent of the gross proceeds will be set aside for general corporate purposes.
RBZ achieved a remarkable 55 percent year-on-year surge in net profit, reaching INR 22.33 crore for the fiscal year ending in March FY23. The revenue from operations in FY23 amounted to INR 288 crore, marking a robust 14.2 percent growth compared to the preceding year. Concurrently, the EBITDA (earnings before interest, tax, depreciation, and amortization) exhibited a significant uptick, soaring by 41 percent to INR 37.8 crore. The margin expansion during this period was noteworthy, registering an increase of 249 basis points to reach 13.11 percent.
Established in April 2008, RBZ Jewellers Limited specializes in crafting antique designs and is renowned as a prominent manufacturer of gold jewellery.
