Motisons Jewellers IPO: 10 things to know before subscribing to Rs 151 crore issue

The IPO will open for subscription on December 18.

Jaipur-based Motisons Jewellers IPO opened for subscription on December 18. The Rs 151 crore issue consists of only a fresh issue portion of 2.75 crore equity shares.

Here are 10 key things to know before subscribing to the offer:

1.) IPO Date

The IPO opened for subscription on December 18, 2023, and will close on December 20, 2023.

2.) Price Band

The price band for the issue has been fixed at Rs 52-55 per share.

3.) Offer Details

The retail jeweller is set to raise Rs 151 crore via the IPO, a fresh issue of about 2.74 crore shares. Ahead of the IPO, the company mobilised Rs 36.3 crore from 2 anchor investors on December 15. Meru Investment Fund PCC-Cell 1 bought 46 lakh equity shares amounting to Rs 25.3 crore, and Zinnia Global Fund PCC-Cell Dewcap Fund purchased 20 lakh shares valued at Rs 11 crore.

Half of the offered size has been reserved for QIBs and 15 percent for HNIs.

4.) Objectives of the Issue

Of the net fresh issue proceeds, the company will spend Rs 58 crore on repayment of debt and Rs 71 crore on working capital requirements. It will keep the rest for its general corporate purposes.

5.) Lot Size

Investors can bid for a minimum of 250 equity shares and multiples of 250 after that. Hence the minimum investment by retail investors would be Rs 13,000 (250 (Lot size) x 52 (lower price band)). At the upper end, the bidding amount will increase to Rs 13,750.

6.) Company Profile

Established in October 1997, the company sells gold, diamond and kundan jewellery. Motisons also sells pearls, silver, platinum and other metals.

Motisons Jewellers' flagship store, Motisons Tower, is located in Jaipur, Rajasthan. The latest branch, which opened in 2021, is located in the Vaishali Nagar neighbourhood in the southwestern part of Jaipur.

7.) Financials 

Motisons, in year-ended March FY23, reported a 50.5 percent increase in net profit to Rs 22.2 crore and revenue from operations climbed 16.5 percent to Rs 366.2 crore compared to the previous year.

8.) Lead Managers

Holani Consultants is the only merchant banker to the issue, while Link Intime India is the registrar to the offer.

9.) Risks

i.) All four of the company's showrooms are situated in Jaipur and any adverse development affecting such a region may hurt Motisons business, prospects, financial condition, and results of operations.

ii.) Motisons are dependent on third parties for supplying products. The company may be unable to maintain or establish formal arrangements with such third parties and disruptions may hurt business and financial condition.

10.) Listing Date

Motisons Jewellers IPO will list on BSE and NSE with a tentative listing date fixed as Tuesday, December 26, 2023.