Rajasthan-based Motisons Jewellers on December 12 fixed the price band for its maiden public issue at Rs 52-55 per share as it intends to mop up Rs 151.09 crore from the market.
Subscription for the public issue will start on December 18 and close on December 20, while the anchor book will open for institutional investors for a day on December 15.
This would be the second IPO opening next week, along with Suraj Estate Developers.
The initial public offering by the jewellery retail company consists of only a fresh issue portion of 2.74 crore equity shares. 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.
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The Chhabra family-owned jewellery maker has raised Rs 33 crore by allotting 60 lakh shares through a pre-IPO placement at a price of Rs 55 per share. As a result, the fresh issue size has been reduced to 2.74 crore shares, from 3.34 crore equity shares mentioned in the DRHP (draft red herring prospectus).
Investors can make a bid for a minimum of 250 equity shares and in multiples of 250 shares thereafter. The minimum investment amount for retail investors will be Rs 13,750 for 250 shares in the IPO, and the maximum, they can invest up to Rs 1,92,500 for 3,500 shares as they can not exceed their investment limit of Rs 2 lakh in any IPO.
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Motisons Jewellers has reserved 50 percent of its issue size for qualified institutional buyers, and 15 percent for high networth individuals. And the rest of 35 percent shares are set aside for retail investors.
Motisons Jewellers has started its jewellery business in 1997 with a single showroom in Jaipur and now operates business with a network of four showrooms under the Motisons brand.
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The book running lead manager to the issue is Holani Consultants.
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