Motisons Jewellers subscribed 15x on day 1 with outsized retail interest

• The initial public offer was subscribed 15x times the shares on offer on day 1.
• NII portion of the IPO was subscribed 13x, retail investors portion subscribed 22X.
• The issue’s proceeds earmarked to repay loans, working capital, general corporate purposes and strategic initiatives.

The initial public offer of Jaipur-based Motisons Jewellers was lapped up by investors within an hour of opening on Monday. The ₹151.09 crore issue was subscribed 15 times the shares on offer on the first day.

The interest is reflective of that of the grey market, which expects a 182% listing gain.

The non-institutional investor (NII) portion was subscribed 13x, while the retail investor portion was subscribed 22x. The company has raised ₹33 crore in its pre-IPO funding round from family offices and other investors.

The entirely fresh issue has set a price band of ₹52-55 per equity share. The lot size is 250 equity shares, and in multiples of 250 thereafter. The issue will close on December 20.

The company intends to utilise the net proceeds to repay existing borrowings, towards working capital, general corporate purposes and strategic initiatives.


Source: BSE

‘Regional player with strong track record’

Motisons Jewellers is a well known jewellery brand for over 20 years. They started small in Jaipur's Johri Bazaar, but have grown into a brand with stores across Rajasthan.

Their product line spans traditional, contemporary, and fusion designs, catering to various jewellery preferences and occasions. This includes jewellery suitable for weddings, festivals, daily wear across all age groups and genders, and covers a diverse price spectrum.

“Motisons Jewellers is a regional player with a solid track record of two decades. The company offers around 300,000 designs in gold, diamond and other jewellery across different price points. The growth in Indian jewellery has been driven by rising middle class population and sharp increase in disposable income amongst youth,” said a report by Indsec, which assigns it a ‘subscribe for long term’ rating.

The company heavily relies on third-party suppliers for product provision, and the inability to establish or maintain formal agreements with these entities could pose significant risks.

Disruptions in the production or manufacturing facilities of these third parties, along with their supply chain arrangements or failure to meet quality standards, might adversely impact the company’s reputation, business operations, and financial standing.

Previously, its promoters, Sanjay Chhabra and Sandeep Chhabra, were involved in legal proceedings initiated by an investigation agency concerning betting in Indian Premier League cricket matches. Although they have been formally cleared of these charges, any potential reopening of these matters could potentially harm the company’s business and reputation.