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Motisons Jewellers IPO Check Issue Size Date and Price Band

09 Feb 2024


2023 proved to be a blockbuster year for Indian stock market investors. Besides both Nifty and Sensex repeatedly breaching their all-time highs, a flurry of Initial Public Offerings (IPOs) hit the markets and provided bumper listing gains. As we move towards the end of the year, several more companies have decided to take advantage of the bull markets and launch their IPOs.

Among the mainboard companies launching their IPOs in December 2023 is Motisons Jewellers Limited. The company plans to raise up to Rs. 151.09 crores through its IPO, which opens for public subscription on Monday, 18 December 2023. Continue reawding to delve into the details of the Motisons Jewellers IPO and evaluate whether you should invest in it.

About Motisons Jewellers Limited

Incorporated in 1997, Motisons Jewellers Limited is a leading jewellery brand in Northwestern India. It is engaged in designing and selling silver, gold, and diamond jewellery. Besides, the company also sell jewellery products through its showrooms. These products include Kundan, pearl, platinum, and other precious and semi-precious stones and metals.

As of 31 March 2023, Motisons Jewellers had four exclusive showrooms at different locations in Jaipur, Rajasthan. The company offers traditional, contemporary, and mixed jewellery designs for various purposes, such as weddings, festivals, and gifting. The company’s products can cater to customers belonging to different age groups, genders, and budgets. It claims to have over 3 lakh jewellery designs in gold, diamonds, and other metals across its four showrooms.

Key Strengths of the Issuing Company

Evaluating the key strengths of the issuing company can provide insights into its future growth potential and help you make an informed decision when considering an IPO investment. As per the Red Herring Prospectus (RHP), the core strengths of Motisons Jewellers Ltd. include:

  • “Motisons” is an established and well-reputed jewellery brand in Northwestern India. It has a heritage and legacy of more than two decades
  • The showrooms are located strategically in prime locations of Jaipur, Rajasthan. They are accessible to citizens from all corners of the city
  • The company claims to have a diversified product portfolio comprising more than 3 lakh jewellery designs
  • The company has meticulously planned inventory management to cater to the unique requirements of its customers in different showrooms
  • The use of technology not only secures customer data but also ensures better logistics management and risk mitigation

Key Risks or Weaknesses

Analysing the risks and vulnerabilities of the issuing company can give you an idea of the potential threats that can hamper its long-term growth. Below are the core risks and weaknesses associated with Motisons Jewellers Ltd:

  • All four showrooms are located in the same city. Any unfavourable development here can adversely impact the company’s business
  • The company’s promoters are involved in legal proceedings against the stock exchanges and the Securities and Exchange Board of India (SEBI)
  • The company is highly dependent on external loans to meet its working capital requirements
  • The company is involved in an unorganised and highly competitive business
  • The company has to maintain high inventory levels all the time. Changes in market demands or customer preferences can lead to huge losses

Core Financials of the Company

The company’s net worth and revenue for operations have thrived during the last three financial years. The net profits in FY23 have more than doubled compared to two years ago. The Return on Equity (ROE) for FY23 stood at an impressive 18%.

For more details on the financials of Motisons Jewellers Ltd. for the last three financial years, you can refer to the table below:

Particulars For the Period Ended June 2023 As of and for FY Ended March 31
2023 2022 2021
Share Capital 65 65 65 65
Net Worth 143 137 115 101
Total Borrowings 166 165 152 141
Revenue From Operations 87 366 314 213
EBITDA Adjusted 13 50 39 31
Profit After Tax 5 22 15 10
Earnings Per Share (Diluted) 1 3 2 1
Return on Equity 4% 18% 14% 10%

*Amount in Crores

Source – RHP dates 8 December on the SEBI website

Details of the IPO

Motisons Jewellers' IPO will open for public subscription on Monday, 18 December 2023 and close on Wednesday, 20 September 2023. As per the T+3 norm, the listing can happen on 26 December 2023. The table below illustrates additional IPO details:

IPO Date 18 December to 20 December 2023
Basis of Allotment 21-Dec
Listing Date 26-Dec
Face Value Rs. 5 per share
Price Band Rs. 52 to Rs. 55
Lot Size 250 shares
Total Issue Size Rs. 151.09 crores
Offer for Sale Rs. 151.09 crores
Issue Type Book Built Issue
Listing At NSE, BSE

To conclude

Considering the robust revenue growth and substantial grey market premium, Motisons Jewellers IPO seems like an enticing prospect for investors. However, you must consider factors such as your investment goals, risk appetite, and prevailing market conditions before investing.


Related Articles:  How to Analyse an IPO | What is IPO Grading? | What is Cut Off Price In IPO Application 


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