Motisons Jewellers IPO: All You Need To Know

The company will utilise the proceeds mainly for repayment of current borrowings obtained from banks.

(Source: Motisons Jewellers website)

Motisons Jewellers Ltd. launched an initial public offering valued at Rs 151 crore on Monday through a book-building process.

The IPO exclusively consists of a fresh issue comprising 2.75 crore shares with a face value of Rs 10 each. The maiden public issue closes on Wednesday.

The IPO price band is fixed at a price band of Rs 52–55 per share, and the minimum lot size for an application is 250 shares. Retail investors need a minimum investment of Rs 13,750. Small non-institutional investors must invest in 15 lots or 3,750 shares, totaling Rs 2.06 lakh. Big non-institutional investors are required to invest in 73 lots or 18,250 shares, amounting to Rs 10 lakh.

IPO Details

  • Offer opens: Dec. 18

  • Offer closes: Dec. 20

  • Fresh issue size: Rs 151.3 crore

  • Price Band: Rs 52–55 per share.

  • Lot size: 250 shares.

  • Face value: Rs 10 per share.

  • Total offer size: Rs 151.3 crore

  • Listing: NSE, BSE.

Use of Proceeds

The company intends to utilise the net proceeds from the fresh issue for repayment of current borrowings obtained from scheduled commercial banks, meeting the working-capital needs of the company and addressing general-corporate requirements.

Financials 

In the last financial year, Motisons Jewellers' revenue grew 17%, while profit after tax jumped 51%.

Business 

Established in October 1997, Motisons Jewellers specialises in the sale of gold, diamond and various other types of jewellery. The company offers a diverse range of products, including pearls, silver and platinum.

With a portfolio boasting over 3 lakh designs in gold, diamonds and other materials, the company ensures a wide array of choices at different price points.

Key strengths of the company include strategically located showrooms and diversified product portfolio in terms of price range and category. The company has also implemented efficient risk-mitigation systems and procedures.

Key Risks

  • The company is dependent on third-party suppliers.

  • Geographical concentration of operations is only in Jaipur.

  • Intense competition in the fragmented gems & jewellery industry.

  • Vulnerability to volatility in gold and silver prices

Also Read: Jaipur-Based Motisons Jewellers Raises Rs 33 Crore In Pre-IPO Round

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WRITTEN BY
Mahima Vachhrajani
Chartered accountant by trade Research Analyst and Anchor by passion, track... more
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