Ahmedabad-based RBZ Jewellers Makes Par Listing Debut on Dalal Street

27 Dec 2023 , 09:55 AM

RBZ Jewellers, headquartered in Ahmedabad, made its debut on Dalal Street with shares listing at par. The company’s shares were listed at Rs 100 on both the NSE and BSE.

The public issue, valued at Rs 151 crore, garnered exceptional demand during the period of December 18-20, with a subscription rate of 159.61 times across all investor categories. The net proceeds from the fresh issue will be utilized for debt repayment (Rs 58 crore), working capital requirements (Rs 71 crore), and general corporate purposes, addressing total borrowings of Rs 166 crore as of June FY24.

Financially, RBZ Jewellers demonstrated a robust performance, reporting a 55% year-on-year increase in net profit to Rs 22.33 crore for FY23, driven by strong operational efficiency. Revenue during the same period reached Rs 288 crore, marking a 14.2% increase from the previous fiscal year. EBITDA exhibited significant growth, rising by 41% to Rs 37.8 crore, while the operating margin expanded sharply by 249 basis points to 13.11%.

For the first six months ending September FY24, the net profit stood at Rs 12.09 crore on revenue of Rs 125.5 crore.

RBZ Jewellers has outlined plans to allocate the fresh proceeds primarily towards meeting working capital requirements of Rs 80.75 crore. The remaining funds, not exceeding 25% of the gross proceeds, will be designated for general corporate purposes.