At 10.57 am, the public issue was subscribed 2.34 times. The retail category was subscribed 3.60 times, while the NII portion garnered 1.92 times bids. There have been no bids from qualified institutional buyers so far.
The issue, which is completely fresh equity of 2.74 crore shares, has created a strong buzz in the grey market as the company’s shares are trading at over 180% premium compared to the offer price.
“Considering Motisons’ strong brand, proven track record, and growth plans, alongside the current market sentiment, we recommend applying for this IPO with cautious optimism,” said Swastika Investmart.
The company mobilised Rs 36.3 crore from anchor investors, a day before the opening of the issue. Only two investors participated in the anchor book.
About Company
Motisons Jewellery is a hyperlocal jewellery retail chain in Jaipur with 4 showrooms (inclusive of one flagship showroom). The company primarily sources finished jewellery from third-party suppliers across India and its business involves the sale of jewellery made of gold, diamond, kundan etc.
The product portfolio comprises over 300,000 jewellery designs, including a wide range of gold, diamond and other jewellery items across different price points.
Price Band
Motisons Jewellers has fixed a price band of Rs 52-55 for its IPO. Investors can bid for a minimum of 250 shares in one lot and multiples thereafter.
Net Proceeds
Proceeds from the issue will be utilised to the extent of Rs 58 crore for debt payment, Rs 71 crore for funding the working capital requirement of the company and a portion will also be used for general corporate purposes.
Financials
For the three months ended June, the company clocked revenue of Rs 86.7 crore and a profit of Rs 5.47 crore. In FY23, its revenue from operations rose 16% year-on-year (YoY) to Rs 366 crore, while profit jumped 51% to 22.19 crore.
Book-running lead managers
Holani Consultants is the sole book-running lead manager to the issue and Link Intime India Private Limited is the registrar.
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