The subscription period for Motisons Jewellers IPO began on Monday, December 18, and it will end on Wednesday, December 20. The first day of the Motisons IPO saw a blockbuster response from both non-institutional and retail investors, with the offering being fully subscribed within minutes of opening.
By day’s end, Motisons IPO was booked 15.02 times. The retail investor portion of Motisons Jewellers’ initial public offering (IPO) was subscribed 22.24 times, the NII portion 13.82 times, and the QIB portion 8%.
The price range for Motisons Jewellers’ initial public offering (IPO) has been set at ₹52 to ₹55 per equity share, with a face value of ₹10. On Friday, December 15, anchor investors contributed ₹36.3 crore to the Motisons Jewellers IPO. The initial public offering (IPO) lot size for Motisons Jewellers is 250 equity shares, with subsequent lots of 250 equity shares.
In the Motisons Jewellers initial public offering (IPO), a minimum of 15% of the shares are reserved for non-institutional institutional investors (NII), a maximum of 50% of the shares are reserved for qualified institutional buyers (QIB), and a minimum of 35% of the offer is reserved for retail investors.
According to the Red Herring Prospectus (RHP), Motisons Jewellers’ initial public offering (IPO) consists of a new issuance of up to 2,74,71,000 equity shares with a face value of ₹10 apiece.
The company plans to finance the following objectives with the net proceeds of the new offering: covering working capital requirements, pursuing general corporate purposes, and paying back outstanding loans from scheduled commercial banks.
Holani Consultants Private Limited is the offering’s book running lead manager, and Link Intime India Private Ltd is the registrar for the Motisons Jewellers IPO.
Jewelry made of gold, diamonds, and kundans is available for purchase at Motisons Jewellers Limited, along with jewelry composed of other metals such as pearl, silver, platinum, and various alloys.
DP Abhushan Limited (P/E of 29.09), Thangamayil Jewellery Limited (P/E of 24.08), Renaissance Global Limited (with P/E of 27.55), and Goldiam International Limited (with P/E of 27.55) are the company’s listed peers, according to its RHP.
IPO date of Motisons Jewellers
The Motisons Jewellers IPO basis for share allotment is tentatively scheduled to be finalized on Thursday, December 21. The company will then begin refunds on Friday, December 22, with the shares being credited to the allottees’ demat accounts the same day as the refund. On Tuesday, December 26, Motisons Jewellers IPO shares are probably going to be listed on the BSE and NSE. Motisons IPO will list this month on primary markets in accordance with the standard since T+3 listing will be required as of December 1, 2023.
Motisons Jewellers IPO GMP today
As in the previous session, Motisons IPO GMP or Motisons IPO grey market premium is +109. According to investorgain.com, this shows that the share price of Motisons Jewellers was trading at a premium of ₹109 on the grey market.
Based on the upper end of the IPO price range and the current premium in the grey market, Motisons Jewellers’ estimated listing price was ₹164 per share, 198.18% more than the IPO price of ₹55.
A “grey market premium” denotes the willingness of investors to part with more money than the issue price.
BP Equities Pvt. Limited's analysis of Motisons Jewellers' initial public offering
According to the brokerage, Motisons Jewellers boasts several distinct advantages, including a long history that deftly blends tradition and modern sensibility, a broad product line that caters to a variety of consumer niches, and strategically placed showrooms that increase revenue per square foot. Motisons Jewellers has demonstrated robust revenue growth over the past three years, with a notable doubling of net profit in the last two years. The company’s strategic positioning in India’s organized jewellery market, coupled with its stronghold in Rajasthan, has contributed to this increase in profitability. Since net profit margin has consistently hovered around 4–6%, it serves as a solid indicator of retail consumers shifting from unorganized to organized markets
When it comes to valuations, the issue is provided with a P/E multiple of 16.1x of FY23 earnings, which is competitive with respect to similar ratios in the Indian organized jewelry market. Consequently, we advise investors to “SUBSCRIBE” in order to receive listing gains for the issue,” the brokerage stated.
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The brokerage’s report highlights that Motison’s growth prospects are reinforced by its dedication to technology integration and retail network expansion. However, there are a lot of challenges because of the fierce competition and dependence on outside suppliers. Bad press and seasonal fluctuations in demand can also have an impact on the business.
Notwithstanding these factors, there is some risk mitigation provided by the IPO’s appealing 16x P/E valuation. We advise applying for this IPO with cautious optimism given Motisons’ strong brand, track record, and growth plans, as well as the mood of the market at the moment, the brokerage stated.
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