Motisons Jewellers IPO poised to yield substantial listing gains
Following a successful IPO subscription, Motisons Jewellers's Grey Market Premium (GMP) maintains stability at Rs. 78-80. This could translate to listing gains exceeding 145% when the shares debut on December 26 at the upper price band of Rs. 55. However, it's important to remember that GMP only serves as a gauge for the company's shares in the unlisted market and can change quickly.
Massive subscription from buyers/investors
The public offering of Motisons Jewellers saw an impressive subscription rate of 159.6 times, driven by strong interest from qualified institutional buyers and non-institutional investors. The retail portion of the issue was subscribed 122.28 times, while the non-institutional category saw a subscription rate of 233.91 times. Qualified institutional bidders' allocation was booked 157.4 times. The funds raised from the issue will be used for debt repayment (Rs. 58 crore), working capital requirements (Rs. 71 crore), and general corporate purposes.
Company profile and financial performance
Motisons Jewellers is a hyperlocal retail chain with four showrooms. It primarily sources finished jewelry from third-party Indian suppliers, offering gold, diamond, kundan, etc. Their extensive product portfolio features over 3,00,000 designs across various price points. In the three months ending June, Motisons reported revenue of Rs. 86.7cr and a profit of Rs. 5.47cr. For FY23, the company's revenue from operations grew by 16% YoY to Rs. 366cr, while profit soared by 51% to Rs. 22.19cr.
