MUMBAI, 16 JUNE, 2023 (GPN): Ahmedabad-based RBZ Jewellers, one of the leading organised manufacturers of gold jewellery in India, specializing in Antique Gold Jewellery and catering to reputable nation-wide retailers and significant regional players in India has filed its draft red herring prospectus (DRHP) with capital market regulator Sebi to raise funds through for its initial public offering (IPO).

The issue with a face value of Rs 10 each is entirely a fresh issue of 1 crore equity shares.

The Issue is being made through the Book Building Process, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders.

As per the DRHP, the proceeds from the issue will be utilized to the extent of Rs. 80.75 crore for funding working capital requirements of the company and general corporate purposes.

The foundation of RBZ Jewellers’ family gold business was laid by Shri Bababhai Hargovinddas Zaveri, a renowned goldsmith from Patan, Gujarat, several decades ago. In 2004, he established a sole proprietorship named “M/s. Rajubhai Bababhai Zaveri” to venture into the jewellery business. Later, in 2006, Harit Rajendrakumar Zaveri, another Promoter, joined the business at the age of seventeen (17) years.

RBZ Jewellers has a rich history spanning over fifteen (15) years in the jewellery industry. They specialize in designing and manufacturing a diverse range of Antique Gold Jewellery, including jadau, Meena, and Kundan work, which they sell on both wholesale and retail platforms. In addition to their own retail operations, they also provide Antique Gold Jewellery on a job work basis to national retailers.

According to a Care Edge Report, RBZ Jewellers has established a customer base in the wholesale business, serving reputed national, regional, and local family jewellers across 19 states and 72 cities in India. It intends to make strong footprint in Southern India than accounts for 41% of the total jewellery demand in India

The company owns a state-of-the-art gold jewellery manufacturing facility spanning 23,966 sq ft located at Sarkhej Gandhinagar Highway, Ahmedabad. The facility enables them to design and manufacture gold jewellery under one roof.

RBZ Jewellers flagship retail showroom under the brand- Harit Zaveri Jewellers, covering 11,667 sq. ft., is situated in the Satellite area of Ahmedabad, Gujarat. . It owns 10,417 sq. ft. of the showroom space and occupies an additional 1,250 sq. ft. on a lease basis. The company forayed into the retail business in 2014.

The jeweller has an experienced in-house design team where it oversees artisans and craftsmen in developing new products and designs based on market research. Its designs incorporate variety of precious and semi-precious stones, drawing inspiration from traditional Indian art and culture, seamlessly blending these elements with contemporary aesthetics.

RBZ Jewellers’ is preferred by renowned national retailers such as Titan Company Limited, Malabar Gold Private Limited, Joyalukkas India Limited due to its capability to handle large scale orders, as well as prominent retailers like Kalamandir Jewellers Limited, PN Gadgil Jewellers Private Limited, Hazoorilal Jewellers Private Limited, Om Jewellers Private Limited, C. Krishniah Chetty Jewellers, Vummidi Bangaru Jewellers, and CH Jewellers Private Limited

During the past three fiscal years leading up to 2023, the company experienced a remarkable growth in its revenue from operations, with a compound annual growth rate (CAGR) of 64.05%. Specifically, when comparing the last two fiscal years, there was a 14.21% increase in revenue from operations, rising from ₹252.11 crore in Fiscal 2022 to ₹287.93 crore in Fiscal 2023. This growth was primarily attributed to higher revenue generated from the sale of products and services. Similarly, the company’s profit after tax demonstrated significant progress, with a CAGR of 51.36% from fiscal 2021 to fiscal 2023. When comparing the most recent two fiscal years, there was a notable 54.96% increase in profit after tax, climbing from ₹14.41 crore in fiscal 2022 to ₹22.33 crore in fiscal 2023. In terms of volume, the company’s performance exhibited a growth rate of 30.32% CAGR. For instance, it sold and processed 1,058.06 kilograms of gold in FY23 compared to 622 kilograms in FY21.

The Indian Gems and Jewellery (G&J) business has traditionally been very fragmented with consumers mainly purchasing from family jewellers. The fragmented nature of this sector makes it difficult to quantify the number of jewellers in India. The Indian domestic jewellery market size has grown to ₹ 4,641 billion in CY22 as compared to ₹ 2,304 billion in CY16. The long-term demand prospects are supported by growing working population, higher disposable income, easier access to credit and improving standard of living.

Arihant Capital Markets Limited is the sole book running lead manager and Bigshare Services Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.Ends

DRHP Link:: https://www.arihantcapital.com/Files/research-reports/RBZ_JEWELLERS_LIMITED-DRHP.pdf