Stellar Listing: Motisons Jewellers lists at a 98% premium at Rs. 109 per share on the NSE

Motisons Jewellers Limited, engaged in selling gold, diamond, and Kundan jewellery, among other jewellery products, marks its debut on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 103.90 per share, reflecting an impressive 88.91% premium compared to the final issue price of Rs 55 per share. Meanwhile, on the NSE, the stock debuted at Rs 109 per share, representing an impressive premium of around 98% over its final issue price.The current market capitalisation of the company stands at Rs 1,004 crore.

IPO Proceeds

The Company intends to utilise the Net Proceeds from the Fresh Issue for multiple purposes, and they are the Repayment of existing borrowings availed by the company from scheduled commercial banks, funding the working capital requirements of the Company, and general corporate purposes.

Company profile:

Motisons Jewellers Limited, incorporated in October 1997, sells gold, diamond, kundan jewelry, and other jewellery products. The company also offers pearls, silver, platinum, and various other metals.

The company provides a wide range of products, encompassing traditional, modern, and combination designs across various jewellery lines. These offerings cater to special occasions like weddings and celebrations, as well as everyday use, suitable for all ages, and genders, and available in different price ranges. With over 300,000 designs in gold, diamonds, and other materials, the company offers a diverse selection of jewellery products at varying price points.

Motisons Jewellers’ flagship store, Motisons Tower, is situated in Jaipur, Rajasthan. It showcases silver, gold, and diamond jewellery across three floors. The latest branch, inaugurated in 2021, is in the affluent Vaishali Nagar neighbourhood in the southwestern part of Jaipur, Rajasthan.

Subscription details:

On December 20, 2023, the final day of the IPO window, the IPO witnessed an impressive response, especially when compared to other IPOs recently listed, with a subscription rate of 173.23 times. The public issue received remarkable interest, with the retail category being subscribed 135.60 times, the QIB category achieving a subscription rate of 135.01 times, and the NII category reaching a subscription rate of 311.99 times.

The company attracted Rs 36.30 crore from various anchor investors by allocating 66 lakh equity shares at Rs 55 per share. The complete lock-in period for these anchor investors ends on April 26, 2024.

The IPO price range was set between Rs 52 and Rs 55, with a face value of Rs 10 per share and a lot size of 250 shares. The total size of the company’s IPO was Rs 151.09 crore, and the final share issue price was fixed at Rs 55 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have already gained an impressive 98% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.