19
Jun

Ahmedabad-based RBZ Jewellers Initiates IPO by Filing Draft Papers

AHMEDABAD-BASED RBZ JEWELLERS INITIATES IPO BY FILING DRAFT PAPERS

19th June 2023

Ahmedabad-based RBZ Jewellers Limited, a renowned jewellery company, has taken a significant step towards its initial public offering (IPO) by submitting draft papers to the Securities and Exchange Board of India (SEBI). The company plans to raise approximately Rs 100 crore through the issuance of one crore equity shares with a face value of Rs 10 each. This move comes as RBZ Jewellers files a draft red herring prospectus (DRHP) outlining its IPO plans

The proceeds generated from the IPO, as stated in the DRHP, will primarily be utilized for funding the company’s working capital requirements, amounting to Rs 80.75 crore, as well as for other general corporate purposes. RBZ Jewellers aims to strengthen its financial position and expand its operations with this infusion of capital.

The IPO will follow the book building process, allocating around 50 percent of the offering proportionately to qualified institutional buyers (QIBs), 15 percent to non-institutional bidders, and 35 percent to retail investors. Arihant Capital Markets Limited, the lead manager, will exclusively handle the book-building process

Upon successful completion of the IPO, RBZ Jewellers’ equity shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing investors with an opportunity to trade the company’s shares on these prestigious platforms.

About RBZ Jewellers:

RBZ Jewellers has witnessed a growth of 14.21 percent in revenue from operations, amounting to Rs 287.93 crore in FY2023, compared to Rs 252.11 crore in FY2022. The company has also achieved an impressive 55 percent surge in profit after tax (PAT), reaching Rs 22.33 crore in fiscal year 2023 from Rs 14.41 crore in the preceding financial year.

RBZ Jewellers has garnered a strong customer base in the wholesale business, catering to esteemed national, regional, and local family jewellers across 19 states and 72 cities in India. A Care Edge Report further validates the company’s reputation and market presence in the jewellery industry.