As an investor always looking for exciting opportunities, I’ve closely monitored the buzz around Motisons Jewellers IPO. With a price band of $5,500 and an estimated listing price that suggests a 192.73% gain per share, it’s no wonder the investment community is abuzz.
The IPO’s last Grey Market Premium (GMP) hit a high of 106, indicating a strong investor sentiment and a potentially robust listing. I’ll dive into what this could mean for traders and long-term investors, exploring the implications of such a promising start.
Stay tuned as I unpack the details of the Motisons Jewellers IPO, from subscription trends to allotment status, and decode what the GMP fluctuations could signal for its market debut. This is one financial story you won’t want to miss.
Motisons Jewellers IPO Details
As the anticipation for the Motisons Jewellers IPO intensifies, it’s crucial to dive into the specifics that potential investors should be aware of. The IPO was scheduled to commence on December 18, 2023, and ran through to December 20, 2023. With 27,471,000 shares on offer, it marked a significant event on the financial calendar, aggregating up to ₹151.09 Cr.
Here’s the breakdown of the IPO’s essentials:
- Face Value: ₹10 per share
- Price Band: ₹52 to ₹55 per share
- Lot Size: 250 Shares
- Issue Type: Book Built Issue IPO
- Total Issue Size: 27,471,000 shares
- Fresh Issue: 27,471,000 shares
- Listing At: BSE, NSE
Investors were invited to participate within the stipulated price band, keeping in mind the face value and the lot size. Notably, the shareholding structure changed with the pre-issue figure standing at 70,975,000 shares that morphed post-issue to 98,446,000 shares.
|Dec 18, 2023 – Dec 20, 2023
|₹10 per share
|₹52 – ₹55 per share
|Total Issue Size
The buzz around the potential gains was fueled by the last recorded Grey Market Premium (GMP), which stood at a robust 106. This figure suggested that investor sentiment was tipping towards a bullish outlook for Motisons Jewellers’ market performance. Considering the steep 192.73% estimated per-share gain, it was clear that the market was eagerly observing each move of this IPO.
Motisons Jewellers IPO Timeline
The Motisons Jewellers IPO journey begins on December 18, 2023, and is set to close on December 20, 2023. This short subscription window means investors have to act quickly. With the clock tick, the cutoff time for UPI mandate confirmation is slated for 5 PM on the closing date. Clearing this hurdle, the next significant milestone in the IPO timeline is the Basis of Allotment on December 21, 2023. This day decides the allocation of shares to applicants based on regulatory guidelines and subscription levels.
Quickly following the basis of allotment, the initiation of refunds occurs on December 22 if there are any oversubscriptions or partial allotments. In the same stride, shares are credited to investors’ Demat accounts on this very day, ensuring a seamless transition for successful allottees. This step is crucial as it primes investors to trade once the stocks list.
Speaking of listing, the anticipation peaks as Motisons Jewellers is expected to make its market debut on December 26, 2023. The listing date is when the IPO shares first become available for trading on the stock exchanges. For investors, this is where theory meets practice, and the trading behavior of the Motisons Jewellers IPO will reflect the market’s reception of this new entrant.
|IPO Open Date
|Monday, December 18, 2023
|IPO Close Date
|Wednesday, December 20, 2023
|Basis of Allotment
|Thursday, December 21, 2023
|Initiation of Refunds
|Friday, December 22, 2023
|Credit of Shares to Demat
|Friday, December 22, 2023
|Tuesday, December 26, 2023
This timeline is a testament to the meticulous planning and regulatory adherence that’s the hallmark of such an event. It’s a blur of dates and decisions, where each phase paves the way for the next, leading up to a potentially pivotal entry into the public market for Motisons Jewellers. My readers will certainly be keen to keep tabs on the progression of this IPO, monitoring each phase as it unfolds.
Motisons Jewellers IPO Lot Size
Understanding the lot size is crucial when investing in an IPO like Motisons Jewellers. The lot size is the minimum number of shares one must purchase when submitting an IPO application. For Motisons Jewellers, the minimum lot size is set at 250 shares. If I’m interested in investing in this IPO, I must commit to at least this quantity.
The IPO offers a range of options for retail investors like myself, who often look for smaller investments. The minimum amount required to participate is ₹13,750, making it fairly accessible for those not looking to invest heavily.
Here’s a breakdown of what it looks like for various investor categories in accordance with the RHP:
It’s important to note that the maximum number of lots retail investors can apply for is 14, which equates to 3,500 shares or ₹192,500. For sophisticated high net worth individuals (HNI), the minimum investment considerably jumps to 15 lots, that’s 3,750 shares costing ₹206,250. The bar rises even higher for big-ticket investors, with a whopping minimum of 73 lots or 18,250 shares, which would set one back by at least ₹1,003,750.
These figures reflect the inclusivity of the stock market, accommodating various levels of investors, from small retail participants to big institutional entities. The Motisons Jewellers IPO frames an opportunity for investors with different financial capabilities to be part of its growth trajectory. The diverse lot size configuration fortifies the potential for a broad cross-section of market participation, setting the stage for a robust trading environment once the shares are listed.
Motisons Jewellers IPO Promoter Holding
When evaluating an IPO like Motisons Jewellers, potential investors often scrutinize the promoter holding, reflecting their confidence in the company’s future prospects and governance. Pre-issue, the promoters, a blend of individuals and Hindu Undivided Families (HUFs), hold a significant 91.546% of the company’s shares. These include Mr. Sandeep Chhabra, Mr. Sanjay Chhabra, Ms. Namita Chhabra, Ms. Kajal Chhabra, Moti Lal Sandeep Chhabra HUF, Sandeep Chhabra HUF, and Sanjay Chhabra HUF. This substantial stake underlines the founders’ commitment and optimistic outlook on the company’s growth trajectory.
Post-IPO, the promoters’ shareholding will naturally dilute due to the introduction of new equity shares into the market. However, the exact figures detailing the post-issue holdings will only emerge after the IPO concludes and will be guided by the additional 274 crore equity shares entering the system. This dilution is a standard part of the process as companies navigate from private to public ownership, aiming to balance retaining control and expanding their financial horizons.
It’s crucial for potential investors to keep a close eye on any shifts in promoter holding, as any major changes could indicate alterations in the company’s direction or confidence levels. My insights deliver an understanding without venturing into speculation about the future of the company led by its promoters after the IPO transition.
The health of promoter holdings in Motisons Jewellers is a pivotal factor in assessing the stability and future performance of the company’s stocks. So, I’m continuously monitoring the evolving landscape, ready to apprise readers of any critical updates that may surface as the IPO unfolds.
Motisons Jewellers IPO Anchor Investors Details
As an Initial Public Offerings (IPO) expert, I’ve closely monitored Motisons Jewellers and their market moves. On December 15, 2023, a pivotal event occurred — Motisons Jewellers launched an IPO, raising a significant sum from anchor investors. What’s noteworthy is how much they managed to lock down from these pivotal stakeholders.
The anchor investor portion amounted to a cool INR 36.30 crore, a substantial kickoff to their IPO journey. Anchor investors, often seen as a vote of confidence for other potential investors, snapped up 6.6 million shares of the company’s stock. For those unfamiliar, anchor investors are institutional investors who commit to holding a stock for a certain period following the IPO. This commitment can stabilize the stock post-listing and is often a sign of trust in the company’s potential.
One key point I need to highlight is the strategy behind anchor investments. Companies set lock-in periods to ensure these institutional experts remain invested, thus showcasing sustained confidence. Motisons Jewellers has structured their lock-in period into two phases:
- 50% of the anchor shares are locked in until February 2, 2024, exactly 30 days post the bid date.
- The remaining shares stay locked until April 26, 2024, marking the end of a 90-day lock-in phase.
Understanding these details about the anchor investors can give me deeper insights into the market’s read on Motisons Jewellers’ potential. It’s imperative to look out for these dates, as the shareholding pattern could evolve significantly once the lock-in periods expire. The behavior of these anchor investors post these lock-in periods can impact stock stability and affect investor sentiment.
In the grand scheme, Motisons Jewellers’ decision to carve out a hefty anchor portion—INR 36.30 crore, to be precise—could be a strategic move that draws in other investors. The fact that they allocated such a notable chunk of shares to seasoned investors bodes well for their financial narrative. Watching how these pre-IPO moves unfold is interesting, and reflecting on the company’s share price post-listing is interesting. I’ll keep scrutinizing the market and keeping track of any shifts in shareholding patterns as they can potentially forecast the company’s trajectory.
About Motisons Jewellers Limited
Established in October 1997, Motisons Jewellers Ltd stands out as a distinguished player in the gems and jewelry sector. Since its inception, I’ve watched as it steadily carved a niche with a diverse product range encompassing gold, diamonds, Kundan, pearl, silver, platinum, and other precious and semi-precious jewelry. Design innovation has been a cornerstone, appealing to a wide demographic, including men, women, children, and even specialized gifting circles.
My analysis reveals the company’s nimble movement in a dynamic market has catapulted its growth. Perhaps one of the pivotal factors has been their strategic approach to organizing the scattered jewelry market in India. Many entities have struggled to achieve what seems to flow naturally for Motisons throughout my career – combining traditional sensibilities with contemporary styles that resonate well with their target customers.
In the fiscal year 2023, impressive strides were made as India’s domestic gems and jewelry market was valued at an astounding ₹470,000 crore. The data points to gold jewelry leading the segment, one of Motison’s strong suits. The company’s performance has been sterling, with net profits more than doubling, a testament to their operational prowess and demand for their unique designs.
Motisons Jewellers doesn’t operate in isolation; they’re a part of a corporate family including subsidiaries like Motisons Shares Private Ltd and Bholenath Real Estate Private Ltd, broadening their business horizons. With each subsidiary playing a role, they enhance the group’s overall strength and market reach.
Upon launching its IPO, Motisons offered the public a chance to invest in its ongoing success. I’ve had my eye on them, antsy to see how they’d leverage this financial milestone to fuel further growth. As they navigate the post-IPO landscape, I’m especially curious about their ability to sustain and possibly escalate their robust performance amidst market fluctuations and competition.
Motisons Jewellers IPO Review
As the IPO of Motisons Jewellers looms, a vivid analysis uncovers facets vital for would-be investors. I’ve scoured through various investor sentiments and the company’s financial health to shed light on the prospects of the Motisons Jewellers IPO.
Investor Sentiments and Grey Market Premium
Retail investors are showing a keen interest in the Motisons Jewellers IPO. The buzz in the investment community is largely positive, with some analysts suggesting to “Apply for Listing Gain at Upper Price Band.” Additionally, the shares of Motisons Jewellers Limited displaying a hefty 109.09% premium in the grey market as of December 12th, 2023, signals strong investor confidence in the impending public offer.
Financial Health and IPO Details Scrutinizing the company’s financials reveals significant revenue growth and improved profitability. The IPO aims to allot 2.74 crore equity shares to repay existing borrowings, fulfill working capital requirements, and address general corporate purposes. For a clearer perspective, let me lay down the essential details:
|December 18, 2023 to December 20, 2023
|$10 per share
|$52 to $55 per share
|Total Issue Size
Investors should note that Holani Consultants Private Limited and Link Intime India Private Ltd spearhead the IPO as the lead manager and registrar, respectively.
During my analysis, I’ve also considered the company’s operations, which span various jewelry segments like diamond, Kundan, pearl, silver, platinum, and not to forget an extensive range of gold artifacts. This diversified offering places Motisons Jewellers in an advantageous position within India’s gems and jewelry sector.
Competition and Market Position Let’s not overlook the competition aspect. As an investor, it’s crucial to recognize that despite its robust performance, Motisons faces stiff competition from organized and local market players. This rivalry could influence pricing strategies and market share, subsequently impacting its long-term performance post-IPO.
Motisons Jewellers IPO Strengths and Weaknesses
When analyzing the upcoming Motisons Jewellers IPO, it’s crucial to weigh the company’s strengths and weaknesses. Here’s a breakdown to add more clarity for potential investors.
Robust Financial Performance
One of the cornerstones of Motisons Jewellers’ success is its strong financial track record. The company’s net profits have more than doubled recently, showing stability and significant growth in earnings. Such a trend can be a beacon for investors looking for a solid financial performer in the volatile jewelry market.
Wide Product Range
Diversity in product offerings is another key area where Motisons Jewellers shines. From traditional pieces for special occasions to daily wear contemporary designs, their wide range caters to a broad customer base. Their ability to blend classic and modern aesthetics helps them stand out amidst competitors.
With over two decades in the jewelry industry, the company’s management is seasoned and experienced. Such expertise at the helm can be reassuring for investors, considering the strategic decisions and industry insights that come with years of operations.
However, imperfections exist, and awareness of these is as pivotal as recognizing the company’s strengths.
Dependence on Third Parties
Third-party reliance is a significant point of concern. Motisons Jewellers depends on others to supply its products, placing them at potential risk if these relationships falter. Investors should consider this when evaluating the company’s capacity to maintain smooth operations.
High Inventory Cost
The jewelry industry is notorious for high inventory costs. Motisons is no stranger to this, which directly affects their profitability margins. Fluctuations in these margins could be a warning signal for those looking for more predictably performing investments.
Limited Online Presence
A limited online presence is a red flag in today’s digital world. With e-commerce continually increasing, Motisons Jewellers’ scarce digital footprint may hinder their ability to capture the booming online market, potentially stifling growth.
With its IPO slated to open on December 18, 2023, understanding these strengths and weaknesses is essential. The company’s ability to navigate these factors will likely influence its market position post-IPO and the investor’s potential for a rewarding investment.
Motisons Jewellers Limited Financial Information
I’ve pulled the latest financial figures to provide an in-depth look at Motisons Jewellers’ financial performance as they gear up for their initial public offering. A glance at the numbers offers a clear snapshot of their fiscal health and growth trajectory.
Key Financial Metrics Over Time
Between 2021 and 2023, the company witnessed substantial growth in its assets and revenue. As of 30 June 2023, Motisons Jewellers reported total assets at ₹348.13 Crore – a significant increase from the previous years. Here’s a breakdown of the numbers:
|Assets (₹ Cr)
|Revenue (₹ Cr)
|Profit After Tax (₹ Cr)
|Net Worth (₹ Cr)
|Total Borrowing (₹ Cr)
|30 Jun 2023
|31 Mar 2023
|31 Mar 2022
|31 Mar 2021
Revenue and Profitability
The year-over-year growth of Motisons Jewellers is illustrated by a remarkable jump in revenue and net profit. The company soared from ₹213.06 Crore in revenue at the end of March 2021 to ₹366.81 Crore just two years later. Similarly, profit after tax more than doubled, from ₹9.67 Crore to ₹22.20 Crore over the same period, denoting a robust uptrend in profitability.
Motisons Jewellers IPO Reservation
The Motisons Jewellers IPO framework has a specific reservation pattern dictated by SEBI’s guidelines to ensure a diversified and fair allocation of shares. The arrangement stipulates distinct portions for various investor categories: Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs). Understanding this division is crucial for potential investors planning to participate in the IPO.
The company’s IPO reservation aligns with the industry’s regulatory standards, showcasing a well-balanced divide. 50% of the total issue size is reserved for QIBs, who bring substantial investment experience and market knowledge. Quick facts about the QIBs are that they typically include entities like banks, mutual funds, and insurance companies—all of which indicate substantial financial backing and a level of trust in the company’s potential.
On the other end of the spectrum, 35% of the shares are allocated for RIIs, ensuring that individual investors can take a slice of Motisons pie. This portion echoes retail investors’ inclusivity to the market dynamics, often adding to the vibrant trading scenario post-IPO.
Meanwhile, NIIs, comprising high-net-worth individuals and corporate entities, have 15% of the total shares earmarked for them. Their participation often reflects a medium-risk, medium-return profile investment, broadening the range of investor types contributing to the IPO’s dynamic.
Here’s a snapshot of the share distribution:
|Qualified Institutional Buyers
|Not more than 50% of the Net Issue
|Not less than 15% of the Net Issue
|Retail Individual Investors
|Not less than 35% of the Net Issue
The structured distribution of shares across investor categories ensures that Motisons Jewelers’ IPO caters to a wide spectrum of the investment community. It reflects the company’s strategy to build a varied investor base that bolsters confidence and enriches market engagement.
How to apply for Motisons Jewellers IPO
To remove citation numbers and footnotes from your document, you can follow these steps:
Using Zerodha Platform:
- You can apply for the IPO using any supported UPI app by following two steps: Enter your bid on Kite and accept the UPI mandate.
- The IPO opens on December 18, 2023, and closes on December 20, 2023. The issue is priced at ₹52 to ₹55 per share, and the minimum order quantity is 250 shares.
- The IPO application can be online using UPI or ASBA as the payment method. ASBA IPO application is available in the net banking of your bank account.
- To bid online, you need a Demat Account and PAN card.
It’s important to ensure you have a Zerodha account and fulfill all the requirements before applying for the IPO.