Unlisted shares of RBZ Jewellers Ltd are currently trading Rs 5 higher in the grey market, which is a 5 per cent listing gain from the public issue
Read More: RBZ Jewellers IPO: Check Subscription Date, Price Band, Allotment Date And Other Details
RBZ Jewellers IPO: The initial public offering (IPO) of RBZ Jewellers Ltd, which is going to be closed on Thursday, has so far been subscribed 7.25 times. On the second day of bidding on Wednesday, the Rs 100-crore IPO received 7.25 times subscription, getting bids for 5,72,79,150 shares as against 79,00,000 on offer.
So far, the category meant for non-institutional investors received 3.50 times subscription, while the quota for retail individual investors (RIIs) got subscribed 13.35 times. The qualified institutional buyers category has been subscribed 0.05 times.
The IPO was opened for public subscription on December 19, Tuesday. Within hours of opening, the Rs 100-crore IPO was fully subscribed. The IPO’s allotment will take place on December 22, while its listing will take place on December 27 on both BSE and NSE.
RBZ Jewellers IPO GMP Today
According to market observers, unlisted shares of RBZ Jewellers Ltd are currently trading Rs 5 higher in the grey market as compared with its issue price. The Rs 5 grey market premium or GMP means the grey market is expecting a 5 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
The price band of the RBZ Jewellers IPO has been fixed at Rs 95-Rs 100 per share. For investors, the minimum lot size for an application is 150 shares.
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The minimum amount of investment required by retail investors is Rs 15,000.
RBZ Jewellers IPO: Should You Subscribe?
Brokerage firm Anand Rathi has assigned a ‘Subscribe-Long Term’ rating to the IPO. It said, “The company has an extensive coverage and footprint span across India in the jewellery industry. Also, the company offers various designs and innovations across its product range. At the upper price band company is valued at P/E of 17.9X with a market cap of Rs 4,000 million post-issue of equity shares. We believe that valuations of the company is fairly priced and recommend a ‘Subscribe-Long Term‘ rating to the IPO.”
RBZ Jewellers IPO Details
The IPO is entirely a fresh issue of 1 crore equity shares with no offer for sale (OFS) component. The Ahmedabad-based B2B and retail jewellery firm would raise Rs 100 crore through the issue at the upper end of the price band.
Proceeds from the issue will be utilised for funding the working capital requirements of the company and for general corporate purposes. The company’s revenue from operations rose 14 per cent to Rs 289.6 crore in fiscal 2023 from Rs 252.5 crore in fiscal 2022. Besides, profit after tax surged 55 per cent to Rs 22.43 crore in fiscal 2023 from Rs 14.48 crore in the preceding financial year.
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Arihant Capital Markets Ltd is the sole book-running lead manager to the issue. The equity shares are proposed to be listed on BSE and NSE.
