RBZ Jewellers IPO Oversubscribed 10.10 Times on Day 3

21 Dec 2023 , 12:41 PM

On the last day of bidding, December 21, the RBZ Jewellers IPO witnessed strong demand, with an overall subscription of 10.10 times. Here’s a breakdown of the subscription figures in different categories:

• Total Subscribed: The IPO received bids for 7.97 crore shares against the issue size of 79 lakh shares, resulting in a subscription of 10.10 times.
• Retail Investors: Retail investors showed significant interest, subscribing 18.36 times their allotted quota.
• High Net-Worth Individuals (HNIs): High net-worth individuals subscribed 5.14 times the allotted quota.
• Qualified Institutional Buyers (QIBs): QIBs subscribed to a marginal 6% of the reserved portion.

The Rs 100 crore public offer, which closed on December 21, comprised only fresh issues of shares, with no offer-for-sale component. The price band for the issue was fixed at Rs 95-100 per share, and the lot size was a minimum of 150 equity shares, followed by multiples of 150.  Click here to subscribe the IPO.

In terms of reservation, qualified institutional buyers and retail investors were allocated 14 percent and 35 percent, respectively, in the public issue. The remaining 30 percent was reserved for high net-worth individuals (non-institutional investors).

The primary use of the fresh proceeds will be for working capital requirements amounting to Rs 80.75 crore. The remaining funds, not exceeding 25 percent of the gross proceeds, will be allocated for general corporate purposes.

RBZ Jewellers reported a robust performance, with a 55 percent year-on-year growth in net profit at Rs 22.33 crore for the fiscal year ended March FY23. The revenue from operations for FY23 reached Rs 288 crore, marking a growth of 14.2 percent over the previous year. The EBITDA (earnings before interest, tax, depreciation, and amortization) increased sharply by 41 percent to Rs 37.8 crore, with a margin expansion of 249 basis points at 13.11 percent during the same period.

Incorporated in April 2008, RBZ Jewellers Limited specializes in manufacturing gold jewellery with a focus on creating antique designs.