Motisons Jewellers IPO: Should you apply for this Rs 151 crore issue?
Motisons Jewellers launched its Rs 151 crore IPO on Monday. The company has mobilised Rs 36.3 crore from anchor investors, a day before the issue's opening. Only two investors participated in the anchor book.
The issue, which is completely fresh equity of 2.74 crore shares, has created a strong buzz in the grey market as the company's shares are trading at over 100% premium compared to the offer price.
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.
Motisons Jewellery is a hyperlocal jewellery retail chain in Jaipur with four showrooms (inclusive of one flagship showroom). The company primarily sources finished jewellery from third-party suppliers across India and its business involves sale of jewellery made of gold, diamond, kundan etc.,
The product portfolio comprises over 300,000 jewellery designs, including a wide range of gold, diamond and other jewellery items across different price points.
IPO review
«Considering Motisons' strong brand, proven track record, and growth plans, alongside the current market sentiment, we recommend applying for this IPO with cautious optimism,» said Swastika Investmart.
Price band
Motisons Jewellers has fixed a price band of Rs 52-55 for its IPO. Investors can bid for a minimum of 250 shares in one lot and in multiples thereafter.
Net proceeds
Proceeds from the issue will be utilised to the extent of Rs 58 crore for debt payment, Rs 71 crore for funding the working capital requirement of the company and a portion will also be used for general corporate purposes.
Financials
For the three months ended June, the company clocked revenue of Rs 86.7 crore and a profit of
