RBZ Jewellers IPO

RBZ Jewellers Limited

₹14,250 /150 sharesMinimum Investment

RBZ Jewellers IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹100.00₹105.00₹5.00 (5.00%)

RBZ Jewellers IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
19 Dec ‘23 - 21 Dec ‘23₹14,250150₹95 - ₹100
Issue SizeIPO Doc
100.00Cr
RHP PDF

Subscription Status As on 21 Dec '23, 5:20 PM

  • Qualified Institutional Buyers
    13.43x
  • Non-Institutional Investor
    9.25x
  • Retail Individual Investor
    24.50x
  • Total
    16.75x

About RBZ Jewellers

Founded by a family with a rich legacy in the jewellery business, RBZ Jewellers was incorporated as a private limited company in 2008. The company is a prominent player in the Indian gold jewellery market, specializing in Antique Bridal Gold Jewellery. With a history spanning over 15 years, the company has secured its place as a leading organized manufacturer. RBZ Jewellers is recognized for its exquisite designs, including Jadau, Meena, and Kundan work. The company operates on both wholesale and retail fronts, distributing to renowned national, regional, and local family jewellers across 20 states and 72 cities in India. Their retail showroom, operating under the brand name 'Harit Zaveri,' is well-established in Ahmedabad and offers a diverse range of jewellery for bridal, occasional, and daily wear at various price points. RBZ Jewellers has a modern manufacturing facility in Ahmedabad, Gujarat, equipped with advanced technologies in casting, laser, and 3-D printing.;
Parent Organisation
RBZ Jewellers Limited
Founded
2008
Managing Director
Mr. Rajendrakumar Kantilal Zaveri

Strengths & Risks

  • RBZ Jewellers distribute their unique designs to reputable retailers nationwide, holding a noteworthy 1% share in the organized wholesale gold jewellery market in India.
  • RBZ Jewellers has achieved a 12.44% overall volume growth despite the increase in gold prices in 2023.
  • They include an organized manufacturing setup housed under a single roof. This setup incorporates skilled artisans for bench work, advanced laser cutting and engraving technology, state-of-the-art casting units, progressive and hydraulic press dyes, and a 3D printing machine. It handles the entire process from nugget to necklace, particularly specializing in gold bridal jewelry.
  • RBZ Jewellers boasts a team of well-trained artisans and jewelry designers, ensuring a diverse, high-quality product range. This organized setup is favored by large retailers, fostering strong relationships with clients like Titan Company Limited, Malabar Gold Private Limited, Joyalukkas India Limited, and others.
  • The company's wide reach spans 20 states and 72 cities in India, providing a deep understanding of local preferences. Additionally, RBZ Jewellers exports to the Middle East, enhancing its market insight and brand strength.
  • The company has implemented robust systems and procedures to mitigate risks, including strict quality controls, hallmarking processes, and gold and diamond jewelry certifications.
  • With a focus on safety and security, RBZ Jewellers ensures inventory protection through CCTV surveillance, burglar alarms, fire management systems, and round-the-clock security personnel.
  • RBZ Jewellers does not currently have specific or fixed supply agreements with its gold suppliers, although it relies on a small number of them. Any significant disruption in the timely and sufficient supply of raw materials could hurt the company's business, financial performance, and overall financial health.
  • For the six-month periods ending on September 30, 2023, March 31, 2023, and March 31, 2021, RBZ Jewellers experienced negative cash flows from operating activities. Similar negative cash flows may occur in the future, posing potential challenges.
  • The company has a history of delayed payments of statutory dues under various acts, such as the IT Act, the Central Goods and Services Tax Act, 2017, the Employees Provident Funds and Miscellaneous Provisions Act, 1952, and the Employee State Insurance Act, 1948 (ESI Act). Non-compliance or delayed compliance may lead to penalties, impacting the company's financial position.
  • RBZ Jewellers' manufacturing facility and showroom are concentrated in Ahmedabad, Gujarat. Any adverse developments affecting this region could harm the company's business, prospects, financial condition, and operational results
  • Most of the company's revenue comes from its top 10 customers in the wholesale (15.86%) and job work (100%) segments. The absence of long-term contracts with most of these customers leaves the business vulnerable to potential adverse effects if customers decide to source elsewhere or terminate contracts.
  • RBZ Jewellers leases 1,250 sq. ft., approximately 11% of its total retail showroom area. Failure to renew leases or relocate operations on reasonable terms may lead to temporary business disruption.
  • The company heavily depends on the sale of gold jewelry, representing a substantial percentage (88.26%, 87.96%, 90.40%, and 88.35%) of total revenue for the six-month period ending September 30, 2023, and 2023, 2022, 2021. Any gold procurement or jewelry sales challenges could negatively impact RBZ Jewellers' business, financial condition, operational results, and prospects.
  • RBZ Jewellers has availed unsecured loans amounting to Rs. 332.38 lakhs from Promoters, Promoter Group, and other companies, repayable on demand, with the potential for lenders to recall them at any time.
  • The company carries indebtedness with floating interest rates, and any rate increases may escalate finance costs, adversely affecting its financial condition. As of September 30, 2023, RBZ Jewellers had a total sanctioned limit of Rs. 7,990 lakhs for working capital loan facilities, with outstanding debt totaling Rs. 10,184.23 lakhs, including secured debt of Rs. 9,651.73 lakhs from banks.
  • RBZ Jewellers has contingent liabilities of Rs. 500 lakhs as of September 30, 2023, which have not been provided for in its Restated Financial Statements. The realization of these liabilities may adversely impact the company's financial condition.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular95 - 100₹2 Lakh
High Networth Individual95 - 100₹2 - 5 Lakh
For RBZ Jewellers IPO, eligible investors can apply as Regular.
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