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
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