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The RBZ Jewellers public issue was subscribed 2.28 times on Day 1 on Tuesday, on heavy investing by retail investors. The ₹100-crore initial public offering, which comes in a price band of ₹95-100, received bids for 1.80 crore shares, as against an offer of 79 lakh shares. The issue will close on Thursday (December 21) and the market lot is 150 shares.
The offer, a fresh issuance of one crore shares, is being made to finance working capital requirements and for general corporate purposes.
Subscription details
The retail investors’ portion was subscribed 4.55 times and that for non-institutions by 0.71 times. The QIB quota remained muted.
While 35 per cent of the offer has been reserved for qualified institutional buyers, 30 per cent has been reserved for non-institutional bidders and the remaining 35 per cent for retail investors.
Anchor investors
On Monday the company garnered ₹21 crore by allocating 21 lakh shares at ₹100 a share to three anchor investors -- PGIM India Equity Growth Opportunities Fund, BOFA Securities Europe SA and Negen Undiscovered Value Fund.
About RBZ Jewellers
RBZ Jewellers specialises in designing and manufacturing antique bridal gold jewellery, including jadau, Meena, and Kundan work, which it sells on both a wholesale and retail basis. It also processes and supplies Antique Bridal Gold Jewellery on job work basis to national retailers.
The company has complete control over the entire value chain and a customer base in the wholesale business, which includes reputed national, regional, and local family jewellers across 20 states.
It intends to make a strong footprint in Southern India that accounts for 41 per cent of the total jewellery demand in India.
At its manufacturing facility on the Sarkhej Gandhinagar Highway, Ahmedabad, it designs and manufactures gold jewellery under one roof.
RBZ Jewellers operates retail showrooms under the brand name “Harit Zaveri” and is an established player in Ahmedabad, Gujarat.
For the six months ended September 30, the company posted revenue of ₹125.46 crore and a profit-after-tax of ₹12.09 crore.
Arihant Capital Markets Ltd is the sole book-running lead manager and Bigshare Services Pvt Ltd the registrar to the Issue. The equity shares are proposed to be listed on the main board of both the BSE and NSE.
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