Ahmedabad-based RBZ Jewellers has finalised December 19 as the opening date for its upcoming initial public offering (IPO). This will be the fifth public issue opening next week. The price band announcement will take place in the next couple of days.
The anchor book of the IPO will be opened for a day on December 18, while the last day for bidding on the offer will be December 21.
The IPO consists of only a fresh issue of one crore equity shares by the gold jewellery manufacturer, and there is no offer-for-sale component.
The fundraising by the company may be in the range of Rs 100-125 crore, sources recently told Moneycontrol.
The fresh issue proceeds, excluding IPO expenses, will be utilised primarily for working capital requirements of Rs 80.75 crore. The remaining funds will be kept for general corporate purposes, which will not be more than 25 percent of the gross proceeds.
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In the normal course of business, it finances the majority of working capital needs through internal accruals and financing from banks. As of September 2023, it has a total sanctioned limit of Rs 79.9 crore towards working capital facilities and a working capital term loan of Rs 7.9 crore.
"Our total outstanding debt as of September 30, 2023, was Rs 101.84 crore, which included working capital loans (secured) of Rs 70.96 crore, working capital terms loans (secured) of Rs 6.5 crore and unsecured borrowings of Rs 5.32 crore," RBZ said in its red herring prospectus.
The company has reserved 35 percent of the total IPO size for qualified institutional investors and another 35 percent for retail investors, while the remaining 30 percent is set aside for high networth individuals (non-institutional investors).
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RBZ Jewellers designs and manufactures antique bridal gold jewellery consisting of jadau, meena and kundan work and has registered a massive 55 percent on-year growth in net profit at Rs 22.33 crore for the year ended March FY23 backed by margin performance.
Revenue from operations for the year FY23 stood at Rs 288 crore, growing 14.2 percent over the previous year, while the EBITDA (earnings before interest, tax, depreciation and amortisation) increased sharply by 41 percent to Rs 37.8 crore with margin expansion of 249 bps at 13.11 percent during the same period.
Its net profit for the six months ended September FY24 stood at Rs 12.09 crore on revenue of Rs 125.5 crore.
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Apart from selling jewellery on a wholesale and retail basis, the company owned by promoters Rajendrakumar Kantilal Zaveri and Harit Rajendrakumar Zaveri also operates its retail showroom under the brand Harit Zaveri in Ahmedabad and exports jewellery to the Middle East.
Meanwhile, RBZ has decided to finalise the basis of allotment of IPO shares by December 22 and will credit equity shares to the demat accounts of successful investors by December 26, as the markets and banks will remain shut on December 25 for the Christmas holiday.
The trading in equity shares will commence on the BSE and NSE with effect from December 27, as per the IPO schedule.
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This will be the fourth jewellery company listing on the bourses this year in the mainboard segment. Motisons Jewellers will open its Rs 151-crore public issue on December 18, while Senco Gold and Vaibhav Jewellers already listed this year.
Arihant Capital Markets is the book-running lead manager to the issue, while Bigshare Services is the registrar to the offer.
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