Motisons Jewellers debuted on the stock market with a 98% return, opening at Rs. 109 against the IPO price of Rs. 55.
2
High subscription rate
The company's Rs. 151 crore public issue was subscribed 159.61 times. HNIs bought 233.91 times, QIBs 157.40 times and retail investors 122.28 times.
3
Utilization of IPO proceeds
The Chhabra family-owned jewelry retail company plans to use the net proceeds to repay debt (Rs. 58 crore) and meet working capital requirements (Rs. 71 crore).
4
Financial performance
The company has shown strong revenue growth over the past three years, with net profit doubling in the last two years and revenue increasing by 16.5% in the year ended March FY23.
5
Potential risks
Despite strong revenue growth, the company's regional concentration in Jaipur and promoters' involvement in investigations pose potential risks.