Motisons Jewellers Dazzling Entrance 98% Above in IPO

Motisons Jewellers, a Jaipur-based jewellery retail company, marked a strong debut on December 26, 2023, as its shares listed at an impressive 98 percent premium over the issue price. The stock commenced trading at Rs 109, a substantial increase from its IPO price of Rs 55.

Background and IPO Details:

Motisons Jewellers had a highly successful initial public offering (IPO) worth Rs 151 crores, which witnessed overwhelming demand from investors. The IPO, open for subscription from December 18 to December 20, 2023, garnered a staggering oversubscription of 159.61 times. High net worth individuals subscribed 233.91 times, qualified institutional buyers 157.40 times, and retail investors 122.28 times.

The IPO comprised an entirely fresh issue of 2.75 crore shares. The net fresh issue proceeds are earmarked for the repayment of debt (Rs 58 crore), meeting working capital requirements (Rs 71 crore), and general corporate purposes. As of June FY24, the company’s total borrowings amounted to Rs 166 crore.

Financial Performance:

Motisons Jewellers, a family-owned business by the Chhabra family, has exhibited robust revenue growth over the past three years, witnessing a doubling of net profit in the last two years.

Listing Details:

The shares of Motisons Jewellers were officially listed on both BSE and NSE on December 26, 2023.

IPO Price Band and Investment Details:

The IPO was priced in the band of ₹52 to ₹55 per share, with a minimum lot size for an application set at 250 shares. Retail investors needed a minimum investment of ₹13,750. Substantial non-institutional investors (sNII) had a minimum lot size of 15 lots (3,750 shares), requiring an investment of ₹206,250, while big non-institutional investors (bNII) had a minimum lot size of 73 lots (18,250 shares), amounting to ₹1,003,750.

FAQs: (Frequently asked Questions) 

1. How much did Motisons Jewellers shares list at on debut?
   Motisons Jewellers shares listed at a 98 percent premium, starting at Rs 109 against the IPO price of Rs 55.

2. What was the size of Motisons Jewellers IPO?
   The Motisons Jewellers IPO was valued at Rs 151 crores.

3. How much was the oversubscription for Motisons Jewellers IPO?
   The IPO witnessed an oversubscription of 159.61 times.

4. What is the utilization plan for the IPO proceeds?
   The net fresh issue proceeds will be used for repaying debt (Rs 58 crore), fulfilling working capital requirements (Rs 71 crore), and general corporate purposes.

5. Who are the promoters of Motisons Jewellers?
   Motisons Jewellers is a family-owned business by the Chhabra family.

6. When did Motisons Jewellers IPO bidding start and end?
   The bidding for Motisons Jewellers IPO started on December 18, 2023, and concluded on December 20, 2023.

7. What is the minimum lot size for retail investors in Motisons Jewellers IPO?
   The minimum lot size for retail investors is 250 shares.

8. When were the shares of Motisons Jewellers listed on BSE and NSE?
   The shares of Motisons Jewellers got listed on BSE and NSE on December 26, 2023.

9. What is the family background of Motisons Jewellers?
   Motisons Jewellers is a Jaipur-based jewellery retail company owned by the Chhabra family.

10. What was the closing date for the Motisons Jewellers IPO subscription?
    The subscription for Motisons Jewellers IPO closed on December 20, 2023.