Motisons Jewellers sees bumper listing on stock market; shares debut at 91% premium

Motisons Jewellers, an Ahmedabad-based jewellery company, witnessed a remarkable response to its Initial Public Offering (IPO). Motisons Jewellers shares on Tuesday listed on the National Stock Exchange (NSE) at a premium of 91% compared to the issue price. The stock debuted at Rs 105, significantly higher than the offer price of Rs 55. Similarly, on the Bombay Stock Exchange (BSE), it debuted at a premium of 89% at Rs 103.9.
Investors showed immense interest in the Motisons Jewellers IPO, leading to a strong buzz in the market. The Grey Market Premium (GMP) of the stock consistently remained 100% over the issue price since the IPO announcement, according to an ET report.
The IPO received a staggering 47.44 lakh applications, making it the third-highest in terms of the number of applications ever received in an IPO. The top two IPOs in terms of applications were Tata Tech with 75 lakh applications and LIC with 50 lakh applications.
The public issue of Motisons Jewellers, valued at Rs 151 crore, was subscribed 159.61 times. The portion reserved for qualified institutional buyers was oversubscribed by 157.40 times, while non-institutional investors showed a tremendous response by oversubscribing 233.91 times. The retail category also witnessed significant interest and was oversubscribed by 122.28 times.

The proceeds from the IPO will be utilized for various purposes. Rs 58 crore will be used for debt payment, Rs 71 crore will be allocated for funding the company’s working capital requirements, and a portion will be utilized for general corporate purposes.
Motisons Jewellers is a popular local jewellery retail chain in Jaipur, operating four showrooms, including one flagship showroom. The company primarily sources finished jewellery from third-party suppliers across India and offers a diverse range of gold, diamond, and kundan jewellery items. With over 300,000 jewellery designs across different price points, Motisons Jewellers caters to a wide customer base.

In terms of financial performance, the company recorded a revenue of Rs 86.7 crore and a profit of Rs 5.47 crore for the three months ending in June. In the fiscal year 2022-23, its revenue from operations grew by 16% year-on-year to reach Rs 366 crore, while profit witnessed a significant jump of 51%, reaching Rs 22.19 crore.
Holani Consultants played a crucial role as the sole book-running lead manager for the IPO, while Link Intime India Private served as the registrar.