RBZ Jewellers IPO price 2023 Review

RBZ Jewellers IPO 2023: The RBZ Jewellers Initial Public Offering, consisting of 10 crore shares that closed bidding on December 21st 2023, has generated much discussion and generated excitement due to both its promising business prospects and remarkable Grey Market Premium (GMP) trajectory in the grey market. This article delves deeper into GMP, uncovering what it tells us about RBZ Jewellers stock listing potential.

What is GMP?

GMP (Gray Market Price) is an unofficial price assigned to unlisted stocks by informal dealers on the grey market, reflecting market sentiment about their potential performance on listing day. A positive GMP indicates optimism while negative ones show pessimism.

RBZ Jewellers IPO Review

RBZ Jewellers GMP: A Mixed Bag

As of today, December 25th 2023, RBZ Jewellers GMP stands at just Rs 5. This figure represents an enormous drop from their initial GMP of Rs 30 observed during bidding period and may be attributable to various factors, including:

  • Market Volatility: Investor sentiment towards the current market remains cautious due to issues of inflation and global economic slowdown, diminishing investor enthusiasm for investing.
  • Weaker Than Expected Subscription: While the overall subscription was 16.72 times, retail subscribers only took out 24.45 subscriptions which indicates weak interest from retail subscribers.
  • Profit-Booking by Grey Market Players: Dealers may be selling off holdings to lock in profits and reduce the GMP. This could put downward pressure on its value.

RBZ Jewellers IPO: Introduction

RBZ Jewellers IPO will feature shares with a face value of Rs10 each, with an initial price range between Rs95-Rs100 per share for book building IPO purposes; final prices will be determined within this range. This IPO involves solely a fresh issue of shares and does not include an offer for sale (OFS) component. The fresh issue segment includes the release of 1,000,00000 shares (100 lakh). At Rs100 per share, this translates to a fresh issue size of Rs100.00 crore; since there is no Ofs component included with this IPO offering. Therefore, RBZ Jewellers Ltd’s initial public offering (IPO) involves issuing one million shares at Rs100 each for an IPO size of Rs100.00 crore. Both the NSE and BSE mainboards will host this offering of shares by RBZ Jewellers Ltd.

DetailInformation
Issue TypeBook Built Issue
Issue size₹100.00 crore
Offer TypeFresh Issue (10,000,000 shares)
Price Band₹95 – ₹100 per share
Face Value₹10 per share
Bid PeriodDecember 19, 2023 – December 21, 2023
Listing DateTentative: Wednesday, December 27, 2023
Listing exchangeBSE, NSE
Minimum Lot Size150 shares
Minimum Investment₹15,000 (for Retail Investors)
Promoter Holding (Post-Issue)75%
Book Running Lead ManagerArihant Capital Markets Limited
Registrar to the IssueBigshare Services Private Limited
Financial Highlights (FY23):
* Revenue₹289.63 crore
* Net Profit₹22.33 crore
* PAT Growth (YoY)55%

How to apply for the RBZ Jewellers IPO?

Lot size refers to the minimum number of shares required of an investor as part of an initial public offering application. Once listed on a major board issue, investors in an IPO may trade individual shares multiple times; investors in an IPO must invest at least 150 shares; in this instance for RBZ Jewellers Ltd the minimum lot size was set at 150 with an indicative upper band value of Rs15,000. Below is a table displaying this data applicable for different categories of investors for the RBZ Jewellers IPO.

ApplicationLotsSharesAmount
Retail (Min)1150₹15,000
Retail (Max)131,950₹1,95,000
S-HNI (Min)142,100₹2,10,000
S-HNI (Max)669,900₹9,90,000
B-HNI (Min)6710,050₹10,05,000

What does this mean for listing day?

RBZ Jewellers appears to be on track for a conservative GMP on listing day, although GMP cannot always predict listing price accurately; numerous factors, such as post-listing news and overall market sentiment can skew its performance.

For investors:

  • Be cautious: Before making an investment decision based solely on GMPs, do your homework by researching the company’s finances, fundamentals and future prospects in depth.
  • Be prepared for volatility: Listing day can be highly unpredictable, with stock prices fluctuating significantly from one trading session to the next. Be ready for long-term holding periods if you believe that company has growth potential.
  • Keep an eye on the market: Staying aware of news flow and market sentiment surrounding RBZ Jewellers can help you make informed decisions regarding your investment portfolio.

Conclusion:

Though RBZ Jewellers GMP does not provide an exact picture of listing day, it gives investors some indication of market sentiment. Investors should remain wary and conduct thorough research prior to making any investments decisions as the stock market can be highly unpredictable and past performance does not guarantee future outcomes.

Disclaimer: This article should only be taken as general purpose & should not be treated as financial advice. Before making any investment decisions based on this information provided in this article, always seek a qualified financial adviser opinion first.

Readme also

Official Bazar for the latest updates on upcoming IPOs and their reviews. Additionally, connect with us on Twitter, Facebook, and Instagram to stay informed. For our most recent video content, be sure to subscribe to our YouTube channel. Thank you for your continued support.

Related Post

Leave a Comment