RBZ Jewellers IPO opens flat, closes at 5% upper circuit

Listing day show of RBZ Jewellers Ltd

RBZ Jewellers IPO had a totally flat listing on 27th December 2023, listing exactly at the IPO issue price on the NSE but on top of that managed to gain sharply from the listing price to close at the 5% upper circuit. Although, this is a mainboard issue, the stock has been placed in the BE segment on the NSE and in the trade to trade (T2T) segment on the BSE. Here, intraday trades are disallowed and the circuit filters either way is limited to 5% only. RBZ Jewellers IPO closed the day at ₹105 per share, a premium of 5% over the listing price of ₹100 per share and also a premium of 5% over the IPO issue price of ₹100 per share. Certainly, the IPO allottees of RBZ Jewellers Ltd would be pleased at the close if not at the listing of the stock. The pattern was exactly similar on the BSE also. On the Bombay Stock Exchange (BSE), the stock of RBZ Jewellers Ltd opened at ₹100 per share, once again exactly at the IPO issue price of ₹100 per share. For the day, the stock closed on the BSE at ₹104.99, an overall gain of 4.99% over the IPO listing price of ₹100 per share and also a premium of 4.99% over the issue price of ₹100 per share. On the NSE and the BSE, the stock of RBZ Jewellers Ltd closed the listing day well above the listing price and the IPO issue price.

While the closing price of RBZ Jewellers Ltd on 27th December 2023 was substantially above the IPO issue price on both the stock exchanges, it also closed comfortably above the listing price on the BSE and also on the NSE. For the day, the Nifty closed 213 points higher while the Sensex closed a full 702 points higher. Both the Nifty and the Sensex showed sterling gains on Wednesday, gaining close to 1% in a single day of trade. That rubbed off on the stock price performance of RBZ Jewellers Ltd.

IPO subscription and pricing details

The stock had seen a very modest subscription in the IPO, despite the small size of the issue. The subscription was 16.86X  overall and QIB subscription was at 13.43X. In addition, the retail portion had got subscribed 24.74X in the IPO while the HNI / NII portion also got a modest subscription of 9.27X. Hence the listing was expected to be flat to modest for the day. However, while the listing was flat, the performance strength got reinforced during the trading day as the stock closed at the 5% upper circuit on both the stock exchanges.

The IPO price was fixed at the upper end of the band at ₹100 per share which was anyways along expected lines considering the relatively modest subscription in the IPO. The price band for the IPO was ₹95 to ₹100 per share. On 27th December 2023, the stock of RBZ Jewellers Ltd listed on the NSE at a price of ₹100 per share, exactly at the IPO issue price of ₹100 per share. On the BSE also, the stock listed at ₹100 per share, exactly at the IPO issue price of ₹100 per share. Here is the RBZ Jewellers Ltd listing story on 27th December 2023.

How the stock of RBZ Jewellers Ltd closed on both exchanges

On the NSE, RBZ Jewellers Ltd closed on 27th December 2023 at a price of ₹105 per share. That is a first day closing premium of 5% on the issue price of ₹100 and also a premium of 5% on the listing price of ₹100 per share. The stock traded in a range for most part of the day, although the stock did also get close to the lower circuit for the day. On the BSE also, the stock closed at ₹104.99. That represents a first day closing premium of 4.99% above the IPO issue price and also a premium of 4.99% above the listing price on the BSE at ₹100 per share. On the NSE and the BSE, the stock listed absolutely flat.

On both the exchanges, the stock listed exactly at the IPO issue price but still managed to close Day-1 rallying higher to close at the upper circuit of 5% for the day. In fact, the opening price was more like a mid-point between the high price and the low price of the day on the NSE and also on the BSE. The high price of the day on both the stock exchanges on 27th December 2023 was well above the listing price, but the stock did see lot of buying post listing at higher levels. In fact, on the NSE, the stock closed with open buy quantity of 3,34,437 shares, showing pent up buying support for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of RBZ Jewellers Ltd on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 27th December 2023. On Day-1 of listing, RBZ Jewellers Ltd touched a high of ₹105 per share on the NSE and a low of ₹96 per share. The premium to the listing price sustained through most part of the day. The opening price or the listing price of the day for RBZ Jewellers Ltd on the NSE was almost like the mid-point between the low price and the high price of the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of RBZ Jewellers Ltd had an upper and lower circuit limit of 5%, as it was listed in the BE segment on the NSE and on the T2T segment on the BSE.

For the day on the NSE, the upper circuit price was ₹105 per share while the lower circuit price was ₹95 per share. During the day, the high price of the day at ₹105 was exactly at the upper band price which is where the stock closed for the day. However, the low price of the day at ₹96 per share was just above the lower band price for the day at ₹95 per share. On Day-1 of listing, the RBZ Jewellers Ltd stock traded a total of 25.61 lakh shares on NSE amounting to traded value of ₹26.19 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some profit booking visible towards the end of the trading session. The stock closed the day with pending buy orders of 3,43,437 shares on the NSE.

Price volume story of RBZ Jewellers Ltd on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 27th December 2023. On Day-1 of listing, RBZ Jewellers Ltd touched a high of ₹104.99 per share on the BSE and a low of ₹95 per share. The premium to the listing price sustained through most part of the day. The opening price or the listing price of the day for RBZ Jewellers Ltd on the BSE was almost like the mid-point between the low price and the high price of the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of RBZ Jewellers Ltd had an upper and lower circuit limit of 5%, as it was listed in the BE segment on the NSE and on the T2T segment on the BSE.

For the day on the BSE, the upper circuit price was ₹104.99 per share while the lower circuit price was ₹95 per share. During the day, the high price of the day at ₹104.99 was exactly at the upper band price which is where the stock closed for the day. However, the low price of the day at ₹95 per share was also the lower band price for the day at ₹95 per share. On Day-1 of listing, the RBZ Jewellers Ltd stock traded a total of 1.27 lakh shares on BSE amounting to traded value of ₹1.29 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with some profit booking visible towards the end of the trading session. The stock closed the day with pending buy orders of shares on the BSE also.  

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with some genuine hint of profit booking visible by the close of the trading session. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too. That makes it a rather attractive stock after the strong listing on Wednesday. The entire volumes were delivery volumes since speculative volumes  are not allowed on the stock. The stock listed in the BE segment on the NSE and the T2T segment on the BSE. This is the compulsory delivery segment where speculative volumes are not permitted. Hence all volumes on the NSE and on the BSE were delivery volumes only.

At the close of Day-1 of listing, RBZ Jewellers Ltd had a market capitalization of ₹419.96 crore with free-float market cap of ₹83.99 crore. RBZ Jewellers Ltd has issued capital of 400 lakh shares with a par value of ₹10 per share.