Jaipur-based Motisons Jewellers moves closer to IPO with DRHP filing

Jaipur-based retailer Motisons Jewellers has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO) with a fresh issue of 3,34,71,000 equity shares, with no offer for sale component. The company had filed preliminary IPO papers with SEBI in September, 2022.

The issue has a face value of Rs 10 per equity share for the proposed share sale. The company, in consultation with the lead banker to the issue, may consider a pre-IPO placement of up to 60,00,000 equity shares for cash consideration. If such placement is completed, the fresh issue size will be reduced.

The proceeds from its fresh issuance worth Rs 58 crore is for the repayment of existing borrowings availed by the company from scheduled commercial banks, and Rs 71 crore is for funding working capital requirement besides general corporate purposes.

Motisons Jewellers is managed by second generation entrepreneurs, Sandeep Chhabra, Chairman & Whole Time Director and Sanjay Chhabra, Managing Director, sons of Late Moti Lal Chhabra, who have over two decades of expertise in the jewellery industry. The flagship store ‘Motisons Tower’ is located at Tonk Road, Jaipur with an area of approximately 11,700 sq ft.

Currently it has a four-showroom network under the ‘Motisons’ brand, located across Jaipur, with the most recent outlet, opened in 2021, at Vaishali Nagar. Motisons clocked a profit of Rs 14.75 crore in the financial year FY22 against Rs 9.67 crore in the previous year.

Courtesy: APN News