On December 26, Motisons Jewellers’ shares made an explosive debut, listing at a premium of 98 percent above the issue price. Against the IPO price of Rs 55, the stock opened trading at Rs 109.
Over the course of December 18–20, 159.61 times of the Rs 151-crore public offering were purchased, indicating a high level of involvement from all investor categories. The allotted quota was selected by high net worth people 233.91 times, qualified institutional purchasers 157.40 times, and regular investors 122.28 times.
In addition to general corporate purposes, the firm would use the net proceeds from the fresh issuance to pay off its debt (Rs 58 crore) and meet its working capital needs (Rs 71 crore). As of June FY24, its total debt was Rs 166 crore.
The family-run jewelry retailer Chhabra, located in Jaipur, has had strong revenue growth over the previous three years, and in the last two years, net profit has doubled.
In comparison to the previous year, net profit increased 50.5 percent to Rs 22.2 crore and sales increased 16.5 percent to Rs 366.2 crore in the fiscal year that concluded in March of FY23. EBITDA climbed by 26.9 percent year over year to Rs 49 crore, with a 109 bps improvement in margin at 13.37 percent.
There are hazards, nevertheless, that must be taken seriously. For example, all four of the company’s showrooms are located in Jaipur, thus any unfavorable development in the area could negatively impact Motisons’s operations, prospects, financial situation, and business.
Investigated for allegedly betting on IPL cricket matches, its promoters, Sanjay and Sandeep Chhabra, are now under investigation by SEBI. According to the RHP, a probe was launched into the promoter group company for allegedly engaging in fraudulent transactions.
