RBZ Jewellers Limited

RBZ Jewellers Limited-IPO DETAILS 

Company Overview 

RBZ Jewellers stands as a prominent player in India's gold jewelry manufacturing sector, specializing in Antique Bridal Gold Jewellery that features intricate Jadau, Meena, and Kundan work. According to the Care Edge Report, RBZ commands a notable 1% share in India's Organized Wholesale Jewellery Market. Rooted in a rich history, the business traces its origins to the legacy of Shri Bababhai Hargovandas Zaveri, a skilled Goldsmith from Patan, Gujarat. The family gold business, established decades ago, has evolved over time. In 2008, the company underwent a name change to RBZ Jewellers, with Kantilal, Kiranben, and Harit Zaveris serving as its founding members. 

The company's operational footprint extends to a manufacturing facility in Gujarat, covering an expansive area of 23,966 square feet. Additionally, RBZ Jewellers maintains a retail presence in the Satellite Area of Ahmedabad, with a retail space spanning 11,667 square feet. Remarkably, the company owns 10,417 square feet of this retail space, further solidifying its position in the gold jewelry market. 

 Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. A significant portion, specifically 80% of the funds from the issue, is earmarked to address the working capital requirements of the company. 

2. For general corporate purposes. 

Company Financials 

Key Performance Indicator 

Pros 

1. RBZ boasts a prestigious clientele, featuring industry leaders such as Titan, Malabar, Joyalukkas, and several others. 

2. Operating from a single, integrated manufacturing facility in Gujarat, the company has the capability to seamlessly manage the entire process from design to manufacturing, all within a centralized setup. 

3. The company's well-diversified business model extends across various segments and a broad client base. Remarkably, the top 10 customers collectively contribute only 20.68% to the revenue for the fiscal year 2023, highlighting the company's resilience and reduced dependency on a small group of clients. 

4. Benefiting from the wholesale-oriented nature of its operations, RBZ anticipates quicker inventory turnover compared to retail-focused businesses. 

Cons 

1. The capital-intensive nature of the jewelry business poses a challenge for the Company, leading to working capital issues. This is evident in the Debt-to-equity ratio, which stood at 1.04x in FY23 and slightly reduced to 0.98x in H1FY24. 

2. As a jewelry manufacturer, the Company is exposed to the volatility of Gold Prices, a risk that is inherent in the industry. Notably, the absence of exclusive supply chain agreements or forward contracts to hedge against price risks leaves the Company susceptible to fluctuations in gold prices, adding an additional layer of uncertainty to its operations. 

3. Furthermore, the Company continues to grapple with inventory challenges, as discussed in the Financials segment. The failure to effectively address and clear this inventory poses a significant risk, potentially leading to adverse effects on the Company's balance sheets. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”