RBZ Jewellers IPO – Get Date, Price, Review and Details

About the company:

Incorporated in April 2008, RBZ Jewellers Limited is an India-based gold jewellery manufacturer specialising in the creation of antique designs. The company designs and manufactures a wide range of antique gold jewellery consisting of Jadau, Meena and Kundan work and sells it on wholesale and retail basis. The company's wholesale customer base includes reputed national, regional and local family jewellers across 19 states and 72 cities in India. RBZ Jewellers Limited also operates its retail showroom under the brand name "Harit Zaveri" and is a leading player in Ahmedabad. RBZ Jewellers Limited's manufacturing facility in Ahmedabad, Gujarat can design and manufacture gold jewellery under one roof. The company offers a diverse range of jewellery collections comprising different manufacturing techniques and varieties. It specializes in Antique Gold bridal jewellery and is known for its unique designs and craftsmanship. It has a dedicated and experienced in-house design team that supervises the artisans and craftsmen to develop new products and unique designs that meet customers’ demands and requirements based on its market research in the jewellery industry. The company's major customers by volume in FY23 are Titan Company Limited, Malabar Gold Private Limited, Joyalukkas India Limited, Senco Gold Limited, Hazoorilal Jewellers Private Limited and others.

The objective of the fresh issue

The company intends to utilize the net proceeds of the fresh issue towards:

• Funding the working capital requirements of the company.
• General corporate purposes.

Key Strengths and Opportunities

• RBZ Jewellers has its manufacturing set-up consisting of bench-working artisans, technology for laser cutting, laser engraving and state-of-the-art casting units. This brings efficiency, control, supply assurance and large-scale supplies that are crucial to meet the demands of the customers.
• The company has a strong foothold in the market and has a deep understanding of local customer preferences and trends. It has maintained strong relationships with national retailers including Titan Company Limited, Malabar Gold Private Limited, Joyalukkas India Limited, and Senco Gold Limited. The client mix and geographical spread have helped the company understand customer preferences across regions, cultures and socioeconomic strata which is one of the key strengths to roll out designs as per the emerging trend.
• The product offerings include antique, bridal, traditional, contemporary and combination designs across jewellery lines and usages across price points. It has been able to create a unique and diversified range of designs and product range to cater to all ages and genres of customers keeping in mind the taste and preference of different regions.

Risks

• The company requires a significant amount of working capital for continued growth. Its inability to meet the working capital requirements, on commercially acceptable terms, may have an adverse impact on its business, financial condition and results of operations.
• RBZ Jewellers’ inability to respond to changes in demands and market trends on time and failure to expand the product offering in a diversified manner may have an adverse effect on its business, results of operations and financial condition.
• The company is dependent on long-term relationships with its customers. If the key customers suffer a deterioration of their businesses and cease doing business with the company, the revenues could decline, which could have an adverse effect on the business and future growth of the company.
• RBZ Jewellers is highly dependent on machinery and technology for its operations. Failure to adopt new and improved technologies may lead the competitors to gain an advantage over the company which may have an impact on its business, financial results and growth prospects.

Financial Snapshot