Motisons Jewellers Shines Bright on Dalal Street Debut, Commands 98% Premium

26 Dec 2023 , 10:03 AM

Motisons Jewellers marked a robust entry on Dalal Street, as its shares were listed at Rs 109 on the NSE, boasting a premium of 98.18% over the issue price of Rs 55, and on the BSE at Rs 103.90 with an 88.91% premium. The public issue, amounting to Rs 151 crore, witnessed an overwhelming response, being oversubscribed 159.61 times from December 18-20, showcasing strong investor participation across all categories.

High net-worth individuals subscribed 233.91 times their allocated quota, qualified institutional buyers showed significant interest with a subscription rate of 157.40 times, and retail investors participated at 122.28 times.

The Jaipur-based jewellery retail company, owned by the Chhabra family, exhibited robust revenue growth over the past three years, with a notable doubling of net profit in the last two years. In the fiscal year ending March FY23, net profit surged by 50.5% to Rs 22.2 crore, and revenue saw a 16.5% increase to Rs 366.2 crore compared to the previous year. EBITDA rose by 26.9% YoY to Rs 49 crore, accompanied by a margin expansion of 109 basis points, reaching 13.37%.

Having commenced its jewellery business in 1997 with a single showroom in Jaipur, Motisons Jewellers expanded its network to four showrooms under the Motisons brand. The company successfully raised Rs 151.09 crore through the public issue, consisting solely of a fresh issue component.

The net fresh issue proceeds will be allocated towards repaying debt (Rs 58 crore), addressing working capital requirements (Rs 71 crore), and general corporate purposes. As of June FY24, the company’s total borrowings stood at Rs 166 crore.

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