Motisons Jewellers Ltd IPO

Motisons Jewellers Ltd is a prominent jewellery business in Rajasthan that started in 1997. The company is a part of the conglomerate, Motisons Group which is an established name in Jaipur. 

Motisons Jewellers plans to raise approximately Rs. 130 crore by issuing an IPO with a fresh issue of 3,34,71,000 equity shares. To go ahead with this plan, it had initially submitted its Draft Red Herring Prospectus to SEBI back in September 2022. However, SEBI returned these documents without approving the IPO plan in December. 

Following this, Motisons Jewellers have re-filed these documents with SEBI and are waiting for approval. This blog carries all the necessary information about the company that can help you prepare a strategy to invest in the upcoming Motisons Jewellers Ltd IPO. 

Also Read: How does an IPO work?

About the Company

Ever since its debut in 1998, Motisons Jewellers Ltd has come a long way to become one of the most reputable jewellery brands in Jaipur. 

Motisons Jewellers is a part conglomerate business under Motisons Group that involves real estate, share market, commodities and similar other businesses. The jewellery business primarily involves the sale of gold, diamond and kundan jewellery. In addition, Motisons Jewellers Ltd also sells pearl, platinum, silver and other precious stones jewellery products. 

Its first outlet or traditional store was set in the famous Johri Bazaar in Jaipur. Today, under the name of Motisons Jewellers, there are four outlets scattered around Jaipur. Besides the traditional stores, the jewellery brand also sells its products through its digital domain. 

The company has arranged virtual trials to assist customers in picking the best jewellery according to their budget. The company’s product lines include contemporary, Indian and Indo-Western jewellery for occasional and casual wear. 

On analysing the company’s financial metrics, you will notice that its total revenue has appreciated from Rs. 21.898.94 million in March 2020 to Rs. 31,447.13 million in March 2022. The total expenses of this company have grown from Rs. 21,475.96 to Rs. 29,448.17 within the same time frame.

IPO Details and Objectives

Through its upcoming IPO, Motisons Jewellers plan to launch approximately 3,34,71,000 equity shares. As per itsDRHP, all the shares are fresh issues and they do not plan on offloading any shares via an Offer for Sale from existing promoters. The company has filed a Draft Red Herring Prospectus (DRHP) with SEBI mentioning its aim and objectives with the upcoming IPO. 

With the net proceeds that it earns from Motisons Jewellers Limited IPO, the company plans to use Rs. 58 crore to repay debts from commercial banks. It also aims to use Rs. 71 crore to fund Motisons Jewellers’ working capital requirements. 

The sole underwriter of this public issue is Holani Consultants while the registrar is Link Intime India.

Motisons Jewellers Limited IPO Details

According to its DRHP, Motison’s Jewellers Ltd will soon issue 3,34,71,000 equity shares on receiving a green signal from SEBI. The jewellery company along with its underwriters has set a face value of Rs. 10 per equity share. 

Following consultation with its lead merchant banker, Motisons Jewellers Limited may consider a pre-IPO placement of 60,00,000 equity shares to anchor investors. It is yet to announce the opening and closing dates, price band and lot size to invest in Motisons Jewellers Limited IPO. 

Also Read: How Can You Analyse An IPO?

Strengths

Here are the strengths of Motisons Jewellers Ltd that make its upcoming IPO a worthy investment. 

• Motisons Jewellers hosts a strong brand name and a heritage of 25 years. Their strength and brand reputation reflect the wide product line of antique-finished, tarnished, pearl, gold, diamond and platinum jewellery. 
• The company has a diverse product portfolio which involves more than 3,00,000 jewellery designs including gold and diamond jewellery. It can also customise jewellery designs as per individual requests. 
• The company is run by promoters with an efficient track record and a background of a highly experienced team and a well-accomplished board of directors. 
• It hosts established and regulated systems and procedures to address risks and other issues. 
• The showrooms and outlets of Motisons Jewellers are strategically positioned across Jaipur. Its online portal is a great tool to engage the youth population on a pan-India basis. 

Risks Involved

Besides the above strengths, you must be aware of the following risks associated with Motisons Jewellers before investing in its IPO:

• The involvement of some of their promoters in proceedings with SEBI or stock exchanges can negatively impact its business and can malign its reputation. 
• Company directors, promoters and the Motisons Jewellers themselves are involved in specific legal proceedings. Any such adverse decision by the Court or any other legal body can lead to certain liabilities. This can also adversely affect the company’s business and operations. 

Also Read: Risk of investing in IPO

Summary

With a legacy of 25 years, Motisons Jewellers upholds its vision to promote trust and faith in the global fine jewellery industry. With this mission, they aim to be known internationally and grow their business globally in the days to come. 

The above information about the company shall suffice to help your decision-making process regarding whether or not to invest in the upcoming Motisons Jewellers Limited IPO. 

Motisons Jewellers Limited IPO FAQs