Jaipur-based Motisons Jewellers made a dazzling entry onto Dalal Street on Tuesday, rewarding investors with a blockbuster debut on the stock exchanges.
The shares of the company debuted on the National Stock Exchange (NSE) at a premium of 98 per cent, listing at Rs 109 in comparison to its IPO issue price of Rs 55. On the Bombay Stock Exchange (BSE), shares of the company started trading at Rs 103.90 apiece.
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Analysts had anticipated a strong debut for the jewellery company, and the market response aligns with those predictions.
The buzz surrounding Motisons Jewellers was evident even before its listing, with the Grey Market Premium (GMP) consistently maintaining a 100 per cent premium over the issue price.
The Rs 151-crore IPO of Motisons Jewellers drew significant attention, receiving a whopping 47.44 lakh applications.
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This places it as the third-highest in terms of the number of applications ever received in an IPO, trailing only Tata Tech (75 lakh applications) and LIC (50 lakh applications).
The oversubscription was staggering, with the IPO subscribed 159.61 times. Notably, institutional buyers and non-institutional investors showed robust interest, subscribing 157.40 times and 233.91 times, respectively. The retail category also saw significant participation, with a subscription of 122.28 times.
The IPO proceeds, amounting to Rs 151 crore, will be strategically utilised — a substantial portion, Rs 58 crore, will be allocated for debt payment, while Rs 71 crore will bolster the working capital requirements of the company. The remaining funds will be earmarked for general corporate purposes.
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Motisons Jewellery, a hyperlocal jewellery retail chain in Jaipur, boasts four showrooms, including a flagship outlet.
The company primarily sources finished jewellery from third-party suppliers across India, specializing in gold, diamond, kundan, and other exquisite materials.
With an extensive product portfolio featuring over 300,000 designs, Motisons Jewellers caters to diverse tastes and preferences, offering a wide range of jewellery items at various price points.
During the quarter ending June, the company achieved a revenue of Rs 86.7 crore and a profit of Rs 5.47 crore. For the entire fiscal year 2022-23, the company witnessed a substantial year-on-year growth, with revenue from operations increasing by 16 per cent to Rs 366 crore, and the profit experiencing a significant surge of 51 per cent, reaching Rs 22.19 crore.
