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Motisons Jewellers IPO Details: Launch Date, Issue Price, Size, GMP & Review

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Motisons Jewellers – About the Company

Motisons Jewellers was incorporated in 1997 and they began their business with a single showroom in Jaipur, Rajasthan, and have since expanded to four showrooms under the "Motisons" brand across the city. Motisons Jewellers is currently engaged in the business of selling Jewellery made of gold, diamonds, and Kundan. In addition, Motisons Jeweller Ltd also sells jewellery products like pearl, silver, platinum, and other precious and semi-precious metals. The Jeweller offers a large variety of handcrafted jewellery, designed and manufactured by in-house designers in close collaboration with skilled local craftsmen located across the country. The company's product profile includes traditional, contemporary, and combination designs across various jewellery lines, for special occasions such as weddings and festivals, to daily wear jewellery for all ages, genders, and across various price points. The company has built an effective business model that gives them control over processes from raw material procurement, design, manufacturing, marketing, and sales through their network.

Its flagship store, Motisons Towers, is located in the Pink City of Jaipur in Rajasthan. The store is spread across over 16,000 SFT and is a three-storeyed structure with dedicated floors for silver, gold, and diamond jewellery. The IPO only have fresh issue and the issue money will largely be utilized to repay borrowings from commercial banks and for general corporate purposes.

Motisons Jewellers IPO Objective

The total issue size of Motisons Jewellers IPO is Rs 151.09 crore, and the whole issue is fresh issue, which means the company will get 100% of the total fund raised from the IPO. As per the RHP, the funds will be used to repay existing borrowings availed by our company from scheduled commercial banks, funding the working capital requirements of the Company and General corporate purposes.

Motisons Jewellers IPO Details:

IPO Open Date 18-Dec-23
IPO Close Date 20-Dec-23
Basis of Allotment 21-Dec-23
Listing Date 26-Dec-23
Face Value Rs 10 per share
Price Rs. 52 to Rs. 55 per share
Lot Size 250 Shares
Issue Size 27,471,000 shares
(aggregating up to ₹151.09 Cr)
Fresh Issue 27,471,000 shares
(aggregating up to ₹151.09 Cr)
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue
NII (HNI) Shares Offered Not less than 15% of the Net Issue

 

Motisons Jewellers IPO Issue Price & Size

The issue price of Motisons Jewellers IPO is between the ranges of Rs. 52 to Rs. 55 per share. Investors can bid on these lower and upper price bands. The total issue of Motisons Jewellers IPO amounts to Rs 151.09 crore, which is only a fresh issue and no promoter and existing shareholder, will receive any funds from IPO. The whole issue will be used in business purpose.

Motisons Jewellers IPO Launch Date

The Motisons Jewellers IPO launch date has been declared by the company. The Motisons Jewellers IPO will be open on 18 Dec, 2023 and closed on 20 Dec 2023. The allotment of shares is likely to be organized on 21 Dec 2023, while the listing date of Motisons Jewellers IPO is set for 26 Dec 2023. Shares will be credited into the demat account by 22 Dec.

Motisons Jewellers Financial Statements:

Particulars FY23 FY22 FY21
Net Revenues (₹ in crore) 366.81 314.47 213.06
Sales Growth (%) 16.64% 47.60%
Profit after Tax (₹ in crore) 22.2 14.75 9.67
PAT Margins (%) 6.05% 4.69% 4.54%
ROE (%) 17.56% 13.63% 10.05%
ROCe (%) 30.04% 25.18% 21.45%
Total Equity (₹ in crore) 137.4 115.45 100.96
Total Assets (₹ in crore) 336.51 306.53 275.42
Return on Equity (%) 16.16% 12.78% 9.58%
Return on Assets (%) 6.60% 4.81% 3.51%
Asset Turnover Ratio (X) 1.09 1.03 0.77
Earnings Per Share (EPS) ₹ 3.42 2.27 1.49

 

Motisons Jewellers Financial Performance

Net revenue increased by 16.64% YoY from Rs. 314 cr. In FY22 to Rs. 366 cr. In FY FY23. There has been consistence growth in PAT margin and profits. In FY22profit after tax was Rs. 14.75 cr, which rose to Rs. 22.2 cr. In FY23, resulting in 6.05% growth YoY. A positive upward trend in RoNW, increasing from 9.58% (FY 2021) to 16.15% (FY 2023), indicating enhanced efficiency in utilizing equity. Diluted Earnings Per Share shows growth from 1.49 (FY 2021) to 3.42 (FY 2023), reflecting increasing earnings for shareholders. A significant rise in Total Assets, indicating substantial business expansion, and a relatively stable Total Liabilities position. The Gross Profit Margin shows fluctuations but remains reasonable, indicating effective cost management. The company has a debt-to-equity ratio of the company stood at 1.20. This suggests that the company is slightly leveraged.

Motisons Jewellers Promoters & Shareholding of the Company

Motisons Jewellers is promoted by Sandeep Chhabra, Sanjay Chhabra, Namita Chhabra, Kajal Chhabra, and others. Currently the promoters hold 91.546% stake in the company, which as per out calculations will be diluted to below 70% post IPO. As per the IPO reservation, 50% of the net offer is reserved for the qualified institutional buyers (QIBs), while 35% of the total issue size is reserved for the retail investors. The residual 15% is kept aside for the HNI / NII investors.

Why Invest in Motisons Jewellers IPO?

Motisons Jewellers Ltd offers several qualitative advantages, including a well-established business that combines heritage with market sensitivity and style, strategic showroom locations and a product portfolio of over 3 lakh products. The company leverages an omnichannel approach, providing strong visibility in both offline and online selling. However, the risks are noticeable. The IPO may be a good price point to enter, as it is a niche business with high growth potential. Following are strength and weakness.

Strengths of the Company

  • Strategically expanded its retail network in Rajasthan, which is known for manufacturing traditional jewellery.
  • Has product portfolio of 3,00,000+ jewellery designs, including a wide range of gold, diamond and other jewellery products available at different price points.
  • Organization implemented efficient inventory management systems, focusing on quality control, safety, security, and surveillance, while strategically procuring raw materials to mitigate financial and operational risks.
  • Company is leveraging promoter’s industry experience to establish a reputable jewellery brand in India, with a broad customer base.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Weaknesses of the Company

  • Dependent on third parties to supply its products.
  • Requirement of high working capital to run operations.
  • Tough competition from organized and local players which leads to price competitions
  • Limited Online Presence and Digital Reach
  • Restricted Geographical Presence (Focused on Jaipur)
  • The company has a high inventory cost due to the nature of the business

Also Read: Types of Risks Associated with Investing in the Stock Market

Motisons Jewellers IPO Grey Market Premium (GMP)

As per the various sources, the Grey Market Premium (GMP) of the Motisons Jewellers IPO is hovering at around Rs 80-90, approx. more than 150% above the upper band of the IPO price of Rs 55. It indicates that the stock might list at a premium of around or above Rs. 130 giving an opportunity to get listing gains.

GMP is a kind of speculative price of a stock of an unlisted company that has launched its IPO and going to list very soon on the bourses. The GMP is defined as the demand and supply of shares in the grey market and can keep fluctuating till the date of listing. Though, it is not a reliable source to know the share price of any company, instead proper valuation of the share price and comparison of the same with its peer group companies is a reliable factor.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated &Reliable

How to Apply for Motisons Jewellers IPO?

If you have a trading and demat account with any registered broker, you can apply to the Motisons Jewellers IPO. However, if don't have one, just apply here at Moneysukh to open a trading account and demat account with the world-class facility for trading or investing in equitiescommodities and currency markets.

Also Read: How to Open Demat Account: Benefits and Documents Required

Moneysukh is one the best discount brokers in India and also offers the best trading platform with Trade Radar and TradingView charting systems. You just need to open an account here and enjoy the best trading facilities to trade in the secondary market or invest in IPOs. If you have already a trading and demat account with Moneysukh just follow the steps given below.

Steps to Apply for Motisons Jewellers IPO:

Step 1: First of all open your browser and type trade.moneysukh.com.

Step 2: Now use your User ID & password to log in and proceed.

Step 3:Now go to the IPO section and click on the Motisons Jewellers IPO.

Step 4: Now you need to fill in the required details like price, quantity, and so on.

Note: At the time of applying in any IPO, bid at the cutoff price and then submit your application. 

Step 5: Now make the payment and submit your application successfully.

How to Check Motisons Jewellers IPO Allotment Status?

The allotment of shares in IPO is organized 3 to 4 days after the closing of the bidding. The basis of allotment shares in Motisons Jewellers IPO is going to be organized on 21, Dec 2023. And on this date or onwards you can check the Motisons Jewellers IPO allotment status through your broker or various online sources, using your PAN or IPO application details.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

The allotment for retailHNI category and other categories are done on the same day. However, if the IPO is oversubscribed many times, there is less chance of getting the allotment of shares for everyone applied in the Motisons Jewellers IPO.

Also Read: How to Increase the Chances of IPO Allotment

And owing to oversubscription of IPO, if you have been not allocated any shares in the allotment, you will get your IPO application money refunded back into your bank account or the fund will be unblocked in the bank account if you have applied through ASBA.

However, if you have been allocated any shares during Motisons Jewellers IPO allotment you will get the shares into your demat account before the date of listing. That you can sell in the secondary market after the listing and earn some money from profit booking.

Also Read: Golden Rules of investing in Stock Market

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