Motisons Jewellers launches IPO, price band set in the range of Rs 52 to Rs 55 per share

The jeweller intends to use the net proceeds of the fresh offering to finance the company’s working capital needs, general corporate purposes and to repay the company’s outstanding loans

Jaipur: Motisons Jewellers Initial Public Offering (IPO) is open for subscription starting December 18, and will close on December 20. Motisons Jewellers IPO comprises a fresh issue of shares of up to 2,74,71,000 equity shares. The Motisons Jewellers IPO price band has been set in the range of Rs 52 to Rs 55 per equity share of the face value of Rs 10.

The allocation to anchor investors for the Motisons Jewellers IPO took place on December 15.

The floor price is 5.20 times the face value of the equity shares, and the cap price is 5.50 times the face value of the equity shares. The price-to-earnings ratio based on diluted EPS for the financial year 2023 at the floor price is 23.06 times and at the cap price is 24.39 times. The Motisons Jewellers IPO lot size is 250 equity shares and in multiples of 250 equity shares thereafter.

Motisons Jewellers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Motisons Jewellers IPO basis of allotment of shares will be finalised on December 21 and the company will initiate refunds on December 22, while the shares will be credited to the demat account of allottees on the same day following refund.

Motisons Jewellers IPO shares are likely to be listed on BSE and NSE on December 26. Given that T+3 listing is mandatory as of December 1, 2023, Motisons IPO will list on primary markets this month under this norm.

Motisons Jewellers IPO details

Motisons Jewellers IPO comprises a fresh issue of shares of up to 2,74,71,000 equity shares of face value of Rs 10 each, as per Red Herring Prospectus (RHP).

The company intends to use the net proceeds of the fresh offering to finance the following goals: meeting the company’s working capital needs; general corporate purposes; and repaying the company’s outstanding loans from scheduled commercial banks. 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.

The registrar of the Motisons Jewellers IPO is Link Intime India Private Ltd, and the book running lead manager of the offering is Holani Consultants Private Limited.

Motisons Jewellers Limited sells jewellery crafted from gold, diamonds, and kundans in addition to other jewellery items made of metals such as pearl, silver, platinum, and other alloys.

The company offers a variety of jewellery lines with a wide range of products, including combination, traditional, and modern designs. These products include daily wear jewellery for all ages and genders, as well as items for special occasions like festivals and weddings, all at varying price points.

During the fiscal year that ended on March 31, 2022, and March 31, 2023, Motisons Jewellers Limited saw increases in revenue of 16.64% and profit after tax (PAT) of 50.51%, as per reports.

Courtesy: livemint.com and moneycontrol