Motisons Jewellers Limited is coming up with an IPO worth INR 151.09 crores. The offer consists of a fresh issue of 2.74 crore equity shares. The company will utilize the raised funds for repayment of existing borrowings availed by their company, funding working capital requirements, and for general corporate purposes.
Motisons Jewellers Limited IPO – Important Details
| Motisons Jewellers Limited IPO Date | December 18, 2023 to December 20, 2023 |
| Motisons Jewellers Limited IPO Listing Date | December 26, 2023 |
| Motisons Jewellers Limited IPO Price | INR 52 to INR 55 per share |
| Motisons Jewellers Limited IPO Lot Size | 250 Shares |
| Motisons Jewellers Limited IPO Total Issue Size | INR 151.09 crores |
| Motisons Jewellers Limited IPO Basis of Allotment | December 21, 2023 |
| Motisons Jewellers Limited IPO Initiation of Refunds | December 22, 2023 |
| Motisons Jewellers Limited IPO Credit of Shares to Demat | December 22, 2023 |
| Motisons Jewellers Limited IPO Issue Type | Book Built Issue IPO |
| Motisons Jewellers Limited IPO Listing At | BSE, NSE |
Motisons Jewellers IPO – Company Profile
With over two decades of experience, Motison Jewellers is a jewelry retail business led by seasoned entrepreneurs that specializes in crafting and selling exquisite gold, diamond, kundan, pearl, silver, platinum, and other gemstone jewelry, alongside gold/silver coins, utensils, and artifacts.
They predominantly acquire finished jewelry, encompassing gold, diamond, and various precious/semi-precious stones, from diverse suppliers throughout India. To meet rising demand, they engage artisans and operate manufacturing facilities in Jaipur for diamond and gemstone-studded pieces, fostering strong supplier relationships for diverse, handcrafted designs. Efficient raw material procurement ensures a diverse product range at optimal prices.
Their extensive product range spans traditional, contemporary, and fusion designs in gold, diamond, and silver jewelry, catering to diverse occasions and price points. With a dedicated design team, access to local artisans, and nearly two decades of experience, their business model ensures control over processes, from procurement to sales. The focus on design innovation, responsiveness to market trends, and commitment to quality positions them firmly. Certified diamond jewelry, responsive customization, and an effective business model contribute to their success.
Motisons Jewellers Ltd IPO – Fundamental Analysis
Motisons Jewellers Ltd presents a compelling financial profile in its IPO details, showcasing substantial revenue growth, improved profitability, and prudent equity management. Explore the data for investment insights.
Revenue Growth:
Steady revenue growth from 21,304.01 lakhs (FY 2021) to 36,619.61 lakhs (FY 2023) signifies positive sales momentum.
Profitability:
Consistent improvement in profits, with Profit After Tax rising from 967.17 lakhs (FY 2021) to 2,219.58 lakhs (FY 2023).
Return on Net Worth (RoNW):
A positive upward trend in RoNW, increasing from 9.58% (FY 2021) to 16.15% (FY 2023), indicating enhanced efficiency in utilizing equity.
Diluted EPS:
Diluted Earnings Per Share shows growth from 1.49 (FY 2021) to 3.42 (FY 2023), reflecting increasing earnings for shareholders.
Asset and Liability Management:
A significant rise in Total Assets, indicating substantial business expansion, and a relatively stable Total Liabilities position.
Net Asset Value (NAV):
An increasing trend in NAV, from 15.54 to 21.15, suggests an improvement in asset value per share.
Debt Equity Ratio:
A declining trend from 1.40 (FY 2021) to 1.20 (FY 2023) demonstrates a better debt management strategy.
Gross Profit Margin:
The Gross Profit Margin shows fluctuations but remains reasonable, indicating effective cost management.
Motisons Jewellers Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 21,304.01 | 31,433.01 | 36,619.61 |
| Equity (₹ in lakh) | 10,096.29 | 11,545.28 | 13,739.98 |
| Expenses (₹ in lakh) | 19,999.63 | 29,448.17 | 33,688.71 |
| Profit and Loss After Tax (₹ in lakh) | 967.17 | 1,474.72 | 2,219.58 |
| RoNW (%) | 9.58 | 12.77 | 16.15% |
| Diluted EPS only (₹) | 1.49 | 2.27 | 3.42 |
| Total Assets (in lakh) | 1,653.29 | 1,315.27 | 33,650.95 |
| Total Liabilities (in lakh) | 17,445.92 | 19,107.71 | 19,910.97 |
| Net Asset Value | 15.54 | 17.77 | 21.15 |
| Debt Equity Ratio | 1.40 | 1.31 | 1.20 |
| Gross Profit Margin (%) | 18.18 | 15.56 | 17.28% |
Motisons Jewellers Ltd IPO Peer Comparison
Motisons Jewellers Ltd exhibits strong revenue at ₹36,619.61 lakhs with a RoNW of 16.15%. Compared to peers, it reflects moderate EPS but favorable RoNW against Goldiam, DP Abhushan, Thangamayil, and Renaissance Global.
| Company | Revenue (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Motisons Jewellers Limited | 36,619.61 | 10 | NA | 3.42 | 3.42 | 16.15% | 21.15 |
| Goldiam International Limited | 30,344.78 | 2 | 27.55 | 5.22 | 5.22 | 20.90% | 24.98 |
| DP Abhushan Limited | 1,97,512.02 | 10 | 29.09 | 20.33 | 20.33 | 25.03% | 81.36 |
| Thangamayil Jewellery Limited | 3,15,255.00 | 10 | 24.08 | 58.13 | 58.13 | 20.51% | 283.37 |
| Renaissance Global Limited | 1,35,481.09 | 10 | 48.00 | 2.13 | 2.11 | 3.68% | 57.73 |
Motisons Jewellers IPO Objective
Motisons Jeweller aims to allocate ₹5,800.00 lakhs from Net Proceeds to repay existing borrowings, potentially including refinancing. Additionally, INR 7,100 lakhs will fund working capital needs, while the remaining balance serves general corporate purposes, including strategic initiatives, brand building, and growth opportunities.
1. Repayment of existing borrowings availed by the company from scheduled commercial banks: The Company intends to use up to ₹5,800.00 lakhs from the Net Proceeds for repaying existing borrowings from scheduled commercial banks. Repayment may include refinancing or repaying partial or complete amounts before allotment, with the total utilized amount confirmed for such purposes.
2. Funding working capital requirements of the company: The business of the company is working capital. The Company plans to utilize INR 7,100 lakhs to meet its capital requirements. The company requires additional funds to commensurate the growth in the business.
3. General corporate purposes: The Company plans to deploy the balance funds towards the general corporate goal, which is not limited to meeting expenses incurred in the ordinary course of business, such as strategic initiatives, brand-building exercises, and funding growth opportunities.
Motisons Jewellers IPO Risks And Challenges
Motisons Jewellers heavily relies on third-party suppliers, with 99% of goods sourced from them and job workers. Maintaining relations with suppliers is crucial. Promoters face pending notices that, if adversely judged, can harm business and reputation. Managing seasonal inventory, fixed costs, and salaries is essential, as unexpectedly low sales or heightened seasonal variations may negatively impact operations and cash flows.
- The company is heavily dependent on third-party suppliers to supply its products. Almost 99% of the goods sold as of June 2023 were from third-party suppliers and a network of job workers. The company’s entire business will be affected if the relation with the third-party suppliers is not maintained.
- The promoters of the company have various notices pending from the departments. Any adverse judgment of the notice or re-opening of the prior closed judgments will affect the business and the company’s reputation.
- They manage seasonal inventory variations, fixed costs like lease rentals, and constant salaries. Unexpectedly low sales during specific periods or heightened seasonal variations may disproportionately impact operating results, strain resources, and impair cash flows, potentially adversely affecting business, financial condition, and operations.
Motisons Jewellers Ltd IPO – Industry & Market Potential
The Indian retail sector, among the fastest-growing, embraces digitization trends driven by a large consumer base, robust demand, investments, and government support. Digitization enhances market access, accelerates customer acquisition and cash conversion, and fuels retail expansion in India.
The Indian Gems and Jewellery sector is transforming, departing from historical fragmentation to emphasize branded jewelry, capturing untapped markets. Urban consumer preferences for engraved jewelry create distinctive growth prospects in this evolving landscape.
Studded diamond jewelry gained popularity among the younger Indians, favoring 14 or 18-carat gold for affordability and modern designs. This trend challenges traditional perceptions, offering diverse styles and value reassurance.
Motisons Jewellers IPO – Type of Offer
Motisons Jewellers Limited plans an INR 151.09 crore IPO involving a fresh issue of 2.74 crore equity shares. Proceeds will repay existing borrowings to support working capital and general corporate needs.
Motisons Jewellers IPO Offer Size
Motisons Jewellers Limited is set to launch an IPO valued at INR 151.09 crores, involving a new offering of 2.74 crore equity shares. The funds will be employed to repay existing borrowings, support working capital needs, and address general corporate purposes.
Motisons Jewellers Ltd IPO Allotment Structure
Motisons Jewellers Limited’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Motisons Jewellers Limited IPO?
To apply for the Motisons Jewellers Limited through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Motisons Jewellers Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Motisons Jewellers Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Motisons Jewellers Limited IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Motisons Jewellers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Motisons Jewellers Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Motisons Jewellers Limited IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Motisons Jewellers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Motisons Jewellers Limited IPO Offer Registrar
The registrar for the Motisons Jewellers Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: 022-4918 6200
Email: [email protected]
Website: www.linkintime.co.in
Motisons Jewellers Limited IPO FAQs
1. What is the allotment date of the Motisons Jewellers Limited’s IPO?
The allotment date of the Motisons Jewellers Limited’s IPO is December 18, 2023.
2. What is the price band of the Motisons Jewellers Limited’s IPO?
The price band of the Motisons Jewellers Limited’s IPO is INR 52-55 per share.
3. What is the size of Motisons Jewellers Limited’s IPO?
Motisons Jewellers Limited plans to launch an IPO valued at INR 151.09 crores, comprising a fresh issue of 2.74 crore equity shares. The raised capital will repay existing borrowings, support working capital, and meet general corporate needs.
4. What is the listing date of Motisons Jewellers Limited’s IPO?
The listing date of the Motisons Jewellers Limited’s IPO is December 26, 2023.
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