Motisons Jewellers Ltd IPO: Review, Valuation, Date & GMP

Motisons Jewellers IPO - Complete Overview

Originally founded as a partnership firm, 'M/s Motisons Jewellers,' in 1997, the company transitioned into a public limited company in 2011. Motisons Jewellers boasts over two decades of experience in the jewelry industry, led by seasoned entrepreneurs with over 20 years of expertise. Specializing in gold, diamond, and Kundan jewelry, they also offer a range of products including pearl, silver, platinum, precious and semi-precious stones, as well as gold and silver coins, utensils, and artifacts. 

Starting from a single showroom in Jaipur, Rajasthan, known as the 'Traditional Store,' they expanded their presence and currently operate four showrooms under the "Motisons" brand across Jaipur. The flagship store, 'Motisons Tower,' situated on Tonk Road, Jaipur, symbolizes their growth. 

Along with their physical showrooms, Motisons Jewellers also caters to a digitally savvy customer base through their online platform, motisonsjewellers.com, offering a diverse range of products not available in their physical stores since 2018.

 

Motisons Jewellers IPO Overview

Motisons Jeweller's IPO date is slated to be open for subscription from December 18, 2023, to December 20, 2023. This BSE, NSE IPO follows a Book Built Issue IPO.

The Motisons Jewellers IPO  price is fixed at Rs. 52 to Rs. 55. The upcoming BSE, NSE IPO will be listed on December 26, 2023.

The total issue size of this IPO amounts to Rs. 151.09 CR. Within this total issue, 35% is issued to retail investors, and 15% is issued to other investors.

 

Detailed Video

 

 

Motisons Jewellers IPO  timetable (Tentative)

Events	Date
IPO Opening Date	18 December 2023
IPO Closing Date	20 December 2023
IPO Allotment Date	21 December 2023
Refund initiation	22 December 2023
IPO Listing Date	26 December 2023

 

Motisons Jewellers IPO Details

IPO Opening & Closing Date	18 December to 20 December 2023
Face value	Rs.10 per Share
Issue Price	Rs. 52 to Rs. 55 per Share
Lot Size	250 Shares
Price of 1 lot	13,750
Total Issue Size	27,471,000 Shares (aggregating up to Rs.151.09 Cr)
Fresh issue	27,471,000 Shares (aggregating up to Rs.151.09 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Motisons Jewellers IPO Lot Details

Application	Lots	Shares
Minimum Lot Investment (Retail)	1	250
Maximum Lot Investment (Retail)	14	3500
Minimum Lot Investment (HNI)	15	3750

 

Motisons Jewellers IPO Reservation

QIB Shares Offered	50%
Retail Shares Offered	35%
HNI Shares Offered	Not less than 15%

 

Company Financial

The company's total assets increased from 306.53 lakhs in FY 22 to 366.81 lakhs in FY 23. The total revenue for FY 23 was 366.81 lakhs, with a profit after tax (PAT) of 22.20 lakhs. The company's net worth increased to 137.40 lakhs in FY 23, while total borrowings decreased slightly to 164.54 lakhs.

(Amount in Lakhs)

Period	Jun 30, FY 23	FY 23	FY 22
Total Assets	348.13	366.81	306.53
Total Revenue	86.76	366.81	306.53
PAT	5.48	22.20	14.75
Net worth	142.81	137.40	115.45
Total Borrowings	166.03	164.54	151.60

 

Revenue-Distribution Product Wise

The company’s revenue from jewelry sales is dominated by trading in gold jewelry, which has increased over the years. Whereas  Manufacturing contributes less, with gold jewelry sales rising and diamond-studded jewelry dropping to zero. Silver items are consistent in both sectors. Overall, total revenue distribution is balanced at 100% each fiscal year.

(in % age)

Particulars	Jun 30, F.Y. 23	F.Y. 22	F.Y. 21
(A) Manufacturing Sales
Diamond and Gem Stone Studded Jewellery	0.00%	0.00%	0.77%
Gold Jewellery	0.50%	7.50%	5.59%
Silver jewellery and articles	4.53%	4.96%	3.24%
(B) Trading Sales
Gold Jewellery	80.26%	74.57%	74.96%
Diamond and Gem Stone Studded Jewellery	11.49%	9.23%	10.55%
Silver jewellery and articles	3.12%	3.48%	4.60%
Diamond and other stones	0.10%	0.26%	0.30%
TOTAL (A + B)	100%	100%	100%

 

Revenue By Operations

The total revenue from operations for the fiscal year 2023 (FY 23) was 36,680.63 lakhs, compared to 31,447.13 lakhs in FY 22. This represents an increase of 16.7%. The revenue for June 30th (Jun 30) was 8,676.26 lakhs. Other operating income contributed a small amount to the total revenue, at 61.02 lakhs for FY 23 and 14.12 lakhs for FY 22.

(Amount in Lakhs)

Particulars	Jun 30, FY 23	FY 23	FY 22
Revenue from operations	8,672.83	36,619.61	31,433.01
Other Operating Income	3.43	61.02	14.12
Total Revenue from operations	8,676.26	36,680.63	31,447.13

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Meeting the Company's operational capital needs 
• Supporting overall corporate objectives.

 

Promoters and Management of Motisons Jewellers IPO

1. Mr. Sandeep Chhabra
2. Mr. Sanjay Chhabra
3. Ms. Namita Chhabra
4. Ms. Kajal Chhabra

Pre-issue Promoter Shareholding	91.54%
Post-issue Promoter Shareholding

 

Motisons Jewellers IPO Lead Managers

Holani Consultants Private Limited

 

Peers of Motisons Jewellers IPO

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Motisons Jewellers  Limited	10	16.08	3.42
Goldiam International Limited	2	27.55	5.22
DP Abhushan Limited	10	27.55	20.33
Thangamayil Jewellery Limited	10	24.08	58.13
Renaissance Global Limited	10	48.00	2.13

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's DRHP. Motisons Jewellers IPO price is fixed at Rs. 52 to Rs. 55 per share, with an EPS of Rs. 3.42. The company's P/E ratio is calculated at 16.08 based on the issue price.

 

Dividend Policy

No dividends were declared in the last three years, and the Board may retain earnings for long-term stakeholder value, using different payment methods. Interim dividends can be declared between annual general meetings as required.

 

 

IPO's Strengths

• Strategically located showrooms
• Diversified product portfolio across price points and categories
• Established heritage and legacy spanning over two decades
• Efficient systems and procedures to mitigate risk

 

IPO's Weaknesses

• Heavy Dependence on Gold Jewelry Sales
• Limited Online Presence and Digital Reach
• Restricted Geographical Presence (Focused on Jaipur)
• Absence of Consistent Dividend Distribution

 

IPO GMP Today

The Latest GMP of Motisons Jewellers is Rs. 78.

 

Conclusion

Motisons Jewellers presents a mixed picture with established strengths, such as a long-standing legacy and efficient risk management systems. However, there are notable weaknesses, including a heavy dependence on gold jewelry sales and a limited online and geographical presence. Investors should carefully weigh these factors before considering participation in the IPO.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.