RBZ Jewellers IPO: Issue fully subscribed on Day 01; retail portion booked 4.45 times
RBZ Jewellers saw its initial public offering (IPO) receive a decent response from retail investors on the first day of bidding. The IPO opened for subscription today and will remain open until Thursday, December 21.
Through the issue, the company aims to raise ₹100 crore via the issuance of fresh equity shares. The price band for the offer has been fixed at ₹95–100 per equity share, with a face value of ₹10 each.
Also Read: RBZ Jewellers IPO opens today: Should you subscribe to the issue?
RBZ Jewellers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
Investors can bid for a minimum of 150 equity shares and in multiples of 150 thereafter. Hence, at the upper price band, retail investors will have to invest ₹15,000 for one lot.
RBZ Jewellers is one of the leading organised manufacturers of gold jewellery in India, specializing in Antique Bridal Gold Jewellery and distribute to reputable nation-wide retailers and significant regional players in India.
Also Read: RBZ Jewellers Limited raises ₹21 crore from anchor investors ahead of IPO
It is strategically looking to establish a strong presence in Southern India, which accounts for 41% of the total jewellery demand in the country. It occupies 10,417 square feet of the showroom, while the remaining 1,250 square feet are leased.
Subscription status on Day 01
The IPO was fully subscribed on the first day of its offering. The IPO received bids for 1,80,43,350 shares against the 79,00,000 shares available for subscription, resulting in a subscription rate of 2.28 times, as per BSE data.
Notably, the retail segment of the IPO showed strong demand, with a subscription rate of 4.45 times. The non-institutional investors (NIIs) segment saw a subscription rate of 0.71 times, while the qualified institutional buyers (QIB) portion received no subscriptions
Also Read: FirstCry IPO: Ecommerce platform all set to file draft papers to raise over $600 million
Brokerage views
Domestic brokerage firm Anand Rathi said the company has an extensive coverage and footprint span across India in the jewellery industry. At the upper price band, the company is valued at a P/E of 17.9X with a market cap of ₹4,000 million post-issue of equity shares. Thus, the brokerage believes that valuation of the company is fairly priced and recommend a “Subscribe-Long Term” rating to the IPO.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 19 Dec 2023, 05:40 PM IST
