Motisons Jewellers Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Motisons Jewel

CMP

172.07

-2.55 (-1.46%)

  • DRHP
₹55

Offer Price

₹ 151.09 Cr

Issue Size

₹ 13,750

Min Investment

159.61x

Times Subscribed

250

Lot size

Time Line

  • 18
    Dec 2023
    Open
  • 20
    Dec 2023
    Close
  • 21
    Dec 2023
    Finalisation of Basis of Allotment
  • 22
    Dec 2023
    Initiation of Refunds
  • 22
    Dec 2023
    Transfer of Shares to Demat Account
  • 26
    Dec 2023
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Continue to expand its retail network in a cost-efficient manner by leveraging its `Motisons` brand.

  • Focus on expanding its product and brand portfolio to cater to existing portfolio gaps and increase its consumer reach.

  • Leverage technology to grow its operations and focus on online channels.

  • Continue to invest in its marketing and brand building initiatives.

Products & Services

  • The Company is in jewellery business includes the sale of jewellery made of gold, diamond, kundan and sale of other jewellery products that include pearl, silver, platinum, precious, semi-precious stones and other metals.

Strengths

  • We have an established brand name with heritage and a legacy of over two decades.

  • Strategic location of its showrooms.

  • Diversified product portfolio of over 3,00,000+ Jewellery Designs under various categories such as Gold/Diamond Bangles, Necklaces, Earrings, Pendants, Rings and Chains and Silver Items with price points.

  • Established systems and procedure to mitigate risks and efficiencies in inventory management; Quality control Technology focus; safety, security and Surveillance Systems and Procurement of raw materials to avoid the adverse affects of the same on the financial conditions and operations of the company.

  • Promoters with strong leadership and a demonstrated track record supported by a highly experienced and accomplished senior management team and board of directors.

Risks

  • The company is heavily dependent on third parties for supplying its products. The company may be unable to maintain or establish formal arrangements with such third parties, and any disruptions at such third-party production or manufacturing facilities and their supply chains arrangements, or failure of such third parties to adhere to the relevant quality standards may have a negative effect on its reputation, business and financial condition.

  • Its Promoters, Sanjay Chhabra and Sandeep Chhabra, in past, were involved in proceedings initiated by investigation agency in relation to betting in the cricket matches of Indian Premier League. Though they have been duly discharged, any re-opening of matter could have an adverse impact on its business and reputation.

  • Four (4) of its Promoters, Sanjay Chhabra, Sandeep Chhabra and Kajal Chhabra and Motisons Entertainment (India) Private Limited and three (3) members of its Promoter Group, Motisons Shares Private Limited and Motisons Commodities Private Limited and Bholenath Real Estate Private Limited, are involved in proceedings involving SEBI and/or the Stock Exchange and other regulatory authorities. In the event SEBI or any other regulatory authority passes any unfavorable order imposing a penalty or debarment of the four (4) promoters or three (3) members of its Promoter Group from accessing the capital market, the same may have an impact on the business and reputation of the Company.

  • In the past, two (2) of its Promoters, Sanjay Chhabra and Sandeep Chhabra and eight (8) of its Promoter Group Members have contravened the provisions of the SEBI Act and Regulations made thereunder for which SEBI imposed penalties in nature of fine amounting to Rs. 5,00,000 each on its Promoters and the total fine of Rs. 34,00,000 on eight (8) members of its Promoter Group and temporary debarment from accessing capital market of its promoter group company Motisons Commodities Private Limited during the period 20.08.2015 to 05.04.2018. Post 05.04.2018, there were no debarment of any promoter or member of promoter group or any directors. In one (1) matter, its two (2) Promoters have been acquitted also. If any such violation occurs in future, it may affect its goodwill and future aspects.

  • The company has availed unsecured loans from its promoters and members of promoter group carrying 11.60% Average Rate of Interest and secured loans from scheduled commercial banks and FIs carrying 8.58% Average Rate of Interest. Its making prepayment of borrowings other than auto loans from scheduled commercial banks from the proceeds of IPO carrying lessor Rate of Interest over borrowings availed from promoter and promoter group.

Company Promoters

Promoters Holding

Issue For IPO
25.54%
Pre Holding

91.49%

Post Holding

65.95%

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 314.33 (47.60%) 366.20 (16.50%) 16.15 (-)
Gross Profit 314.33 (47.60%) 366.20 (16.50%) 16.15 (-)
Net Income 314.33 (47.60%) 366.20 (16.50%) 16.15 (-)
Assets 314.33 (47.60%) 366.20 (16.50%) 16.15 (-)
Liabilities 314.33 (47.60%) 366.20 (16.50%) 16.15 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Motisons Jewellers Ltd 366.20 22.20 311.44 174.04 16.15 0.00 21.15 13.07 0.54
Kalyan Jewellers India Ltd 10,817.93 224.21 8,945.14 8,945.14 7.14 2.18 30.46 2.50 1.07
Goldiam International Ltd 533.18 84.42 704.84 704.84 14.41 7.82 54.34 11.97 0.15
Thangamayil Jewellery Ltd 3,152.55 79.74 1,246.56 1,246.56 20.50 58.13 283.38 6.39 1.41
Renaissance Global Ltd 2,236.56 87.06 1,919.65 1,919.65 8.52 9.16 108.26 4.53 0.45

Book Running Managers

  • Holani Consultants Pvt Ltd

Registrar & Transfer Agent

Link Intime India Pvt Ltd

C-101 247 Park,
L B S Marg,
Vikhroli West - Mumbai-400083
Phone : 91-22-49186000 Fax: 91-22-49186060

Company Contact Information

270,271,272 & 276,
Johri Bazar,
Jaipur - 302003
Phone : 91-141-4150000 Email : csnareshsharma@motisons.com www.motisonsjewellers.com

Offer Related Information

Initial public issue of 2,74,71,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of the company for cash at a price of Rs. 55 per equity share (including a share premium of Rs. 45 per equity share), aggregating to Rs. 151.09 crores ("The Issue"). The issue will constitute 27.90 % of the post issue paid up equity share capital of the company. The company, in consultation with the brlm, has undertaken a pre-ipo placement of 60,00,000 equity shares for cash consideration... More

News

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