RBZ Jewellers IPO subscribed 7.13 times on Day 02; retail portion sees strong demand
The ongoing initial public offering (IPO) of RBZ Jewellers has witnessed healthy demand from both retail and non-institutional investors (NIIs) during the second day of bidding. The IPO, which opened for subscription on Tuesday (December 19), received a favourable response from retail and non-institutional investors, achieving full subscription on the first day.
The robust demand from these two segments continued during the second day of bidding, as the retail portion was booked 13.10 times, while the non-institutional investors’ portion achieved a subscription rate of 3.48 times. However, the qualified institutional buyers’ (QIB) portion remained undersubscribed, accounting for less than 0.50%.
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Overall, the IPO garnered bids for 5,63,65,650 shares on the second day as against the total offering of 79,00,000 shares, resulting in an overall subscription rate of 7.13 times, according to BSE data.
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.
Bigshare Services Private Limited is the registrar for the RBZ Jewellers IPO, and Arihant Capital Markets Limited is the only book running lead manager.
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RBZ Jewellers is one of the leading organised manufacturers of gold jewellery in India, specialising in antique bridal gold jewellery and distributing it to reputable nation-wide retailers and significant regional players in India.
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.
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Domestic brokerage firm Anand Rathi said the company has extensive coverage and a footprint spanning 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 the valuation of the company is fairly priced and recommends 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: 20 Dec 2023, 06:01 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.