RBZ Jewellers IPO: The initial public offering (IPO) of RBZ Jewellers Ltd has opened for public subscription on Tuesday, December 19. The IPO will remain opened till December 21. Within hours of opening, the Rs 100-crore IPO has been fully subscribed. Till 1:10 pm on the first day of bidding on Tuesday, the IPO received 1.17 times subsciption getting bids for 92,74,500 shares as against 79,00,000 on offer.
The price band of the RBZ Jewellers IPO has been fixed at Rs 95-Rs 100 per share. For investors, the minimum lot size for an application is 150 shares. The minimum amount of investment required by retail investors is Rs 15,000.
RBZ Jewellers IPO GMP Today
According to market observers, unlisted shares of RBZ Jewellers Ltd are currently trading with zero GMP or no premium in the grey market. It indicates no gains on listing day as of now. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
While the IPO allotment will take place on December 22, its listing will take place on December 27 on both BSE and NSE.
RBZ Jewellers IPO: Should You Subscribe?
Though the GMP of RBZ Jewellers IPO is zero as of now, brokerage firm Anand Rathi has assigned a ‘Subscribe-Long Term’ rating to the IPO.
Anand Rathi in its IPO note said, “The company has an extensive coverage and footprint span across India in the jewellery industry. Also, the company offers various designs and innovations across its product range. At the upper price band company is valued at P/E of 17.9X with a market cap of Rs 4,000 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.”
RBZ Jewellers IPO Details
The IPO is entirely a fresh issue of 1 crore equity shares with no offer for sale (OFS) component. The Ahmedabad-based B2B and retail jewellery firm would raise Rs 100 crore through the issue at the upper end of the price band.
Proceeds from the issue will be utilised for funding the working capital requirements of the company and for general corporate purposes. The company’s revenue from operations rose 14 per cent to Rs 289.6 crore in fiscal 2023 from Rs 252.5 crore in fiscal 2022. Besides, profit after tax surged 55 per cent to Rs 22.43 crore in fiscal 2023 from Rs 14.48 crore in the preceding financial year.
Arihant Capital Markets Ltd is the sole book-running lead manager to the issue. The equity shares are proposed to be listed on BSE and NSE.
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