Incorporated in 2008, RBZ Jewellers Limited is one of the leading organised manufacturers of gold jewellery in India, specialising in antique bridal gold jewellery. It distributes the jewellery to nation-wide retailers and significant regional players and holds a market share of 1% of the total organised wholesale gold jewellery market in India.
The company designs and manufactures a wide range of antique bridal gold jewellery consisting of jadau, Meena and Kundan work and sells it on a wholesale and retail basis. Its customer base in wholesale business includes national, regional and local family jewellers spread across 20 States and 72 cities within India. It also operates a retail showroom under the brand name “Harit Zaveri” and is an established player in Ahmedabad.
Its manufacturing facility is situated in Ahmedabad, Gujarat where both the designing and the manufacturing takes place. It employs advanced technologies in casting, laser and 3-D printing.
It has a work-force of 189 employees and a permitted capacity of 250 artisans in its manufacturing facilities. Its marketing endeavours include celebrity engagements, venture with reputed magazines, awareness campaigns in societies, pan India sales tours, advertisements in newspaper, radio shows, billboards including digital media and participation in national, regional and local jewellery exhibitions.
The company also exports its jewellery to the Middle East region.
Between FY21 and FY23, it saw a CAGR rise of 39% in its revenue from operations and 31% in its profit. Moreover, it is estimated that about 10-13 million weddings are held in India every year and the bridal jewellery segment accounts for about 65%-70% share of the total wholesale jewellery segment. Plus, the domestic gold wholesale jewellery industry is expected to grow at a CAGR of 2.5% by 2023, all of which could be beneficial for the company.
And now, RBZ Jewellers Limited is coming out with its initial public offer (IPO). The entire IPO will be a fresh issue. The money raised through the fresh issue will be utilised for funding capital expenditure and general corporate purposes. Its shares will be listed on the NSE and the BSE.
Here are key details about the RBZ Jewellers IPO:
| Company Name | RBZ Jewellers Limited |
|---|---|
| Company Type | Private |
| Company Established | 2008 |
| RBZ Jewellers IPO Open Date | 19th December 2023 |
| RBZ Jewellers IPO Close Date | 21st December 2023 |
| RBZ Jewellers IPO Allotment Status | 22nd December 2023 |
| Credit of Shares to Demat | 26th December 2023 |
| RBZ Jewellers IPO Listing Date | 27th December 2023 |
| RBZ Jewellers IPO Face Value | ₹10 per share |
| RBZ Jewellers IPO Lot size | 150 shares |
| RBZ Jewellers IPO Issue Size | Approx ₹100 crore |
| RBZ Jewellers IPO Listed at | NSE, BSE |
| RBZ Jewellers IPO Price | ₹95 – ₹100 per share |
Financial snapshot
| ₹ crore | FY21 | FY22 | FY23 |
|---|---|---|---|
| Revenue | 106 | 252 | 287 |
| Net profit | 9.74 | 14.4 | 22.3 |
Strengths
- Organised manufacturing setup under one roof with a manufacturing capability of processing gold jewellery of 2,040 kg for the six month period ended 30 September 2023.
- Geographical spread and client mix consisting national retailers such as Titan, Malabar, Joyalukkas, Senco, Kalamandir, PN Gadgil and prestigious 170 family retailers such as Hazoorilal Jewellers, Om Jewellers, C. Krishniah Chetty Jewellers, Vummidi Bangaru Jewellers and CH Jewellers.
- Design and innovation in product range spanning antique, bridal, traditional, contemporary and combination designs across jewellery lines and price points.
- Established systems and procedures to mitigate risk in terms of inventory, surveillance and insurance.
- EBITDA margins of 19%, 10% and 13% in FY21, FY22 and FY23 respectively.
Risks and threats
- Capital intensive business with working capital requirements amounting to ₹96 crore, ₹110 crore and ₹149 crore in FY21, FY22 and FY23 respectively.
- Has experienced negative cash flows from operating activities in FY21, FY23 and the six months ended until 30 September 2023.
- Has incurred indebtedness amassing to ₹101 crore as of 30 September 2023.
- Had an employee attrition rate of 64%, 60% and 56% in FY21, FY22 and FY23 respectively.
- Subject to seasonal fluctuations, especially lower income in peak seasons may have a disproportionate effect.
- Subject to the risk of fraud, raw material or jewellery theft, design theft, employee negligence or similar incidents.
- Subject to extensive statutory and regulatory requirements and supervision.
- Faces competition from both the organised and unorganised players in the industry.
You can now apply for the RBZ Jewellers IPO on Upstox here.