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Ahmedabad-based RBZ Jewellers Limited has filed draft papers for initial public offering (IPO) to raise approximately ₹100 crore through a fresh issue of one crore equity shares with a face value of ₹10 each.
The company has filed a draft red herring prospectus (DRHP) with the markets regulator SEBI (Securities and Exchange Board of India).
The issue is being made through the Book Building Process, wherein maximum 50 per cent of the issue is reserved for Qualified Institutional Buyers (QIBs), minimum 15 per cent is reserved for allocation to Non-Institutional Bidders and minimum 35 per cent of the Issue is kept for Retail Individual Bidders.
The company will use the proceeds from the IPO to the tune of ₹80.75 crore to fund working capital requirements and general corporate purposes.
Arihant Capital Markets Limited is the sole book running lead manager and Bigshare Services Private Limited is the registrar to the offer. The equity shares will be listed on BSE and NSE.
Set up by a noted goldsmith from Patan, Gujarat Bababhai Hargovinddas Zaveri, RBZ Jewellers has been in the jewellery industry for fifteen years with specialisation in designing and manufacturing diverse range of Antique Gold Jewellery including jadau, meena, and kundan work. Besides wholesale, the company forayed into the retail business in 2014. It has a gold jewellery manufacturing facility in Ahmedabad that enables it to design and manufacture gold jewellery under one roof.
Revenue growth
According to a Care Edge Report, RBZ Jewellers has established a customer base in the wholesale business, serving reputed national, regional, and local family jewellers across 19 States and 72 cities in India. The company intends to make a strong footprint in south India.
RBZ Jewellers’ revenues grew by 64 per cent CAGR during the past three fiscal years. The revenue from operations during fiscal 2023 increased by 14.21 per cent to ₹287.93 crore, rising from ₹252.11 crore in the previous year. Its net profit for fiscal 2023 increased to ₹22.33 crore, up 54.96 per cent from ₹14.41 crore in 2022. In volumes, the company sold and processed 1,058.06 kilograms of gold in fiscal 2023 versus 622 kilograms in FY21.
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