A remarkable start was made when Motisons Jewellers’ shares debuted on December 26 at a premium of 98% above the issue price. The stock opened trading at Rs 109, compared to the IPO price of Rs 55.
The Rs 151 crore public offering was bought out 159.61 times between December 18 and 20, demonstrating strong participation from all investor groups. 233.91 high-net-worth individuals, 157.40 qualified institutional buyers, and 122.28 regular investors chose the allowed quota.
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The company will utilize the net proceeds from the new offering, in addition to general corporate purposes, to settle its debt (about Rs. 58 crore) and fund its working capital requirements (approximately Rs. 71 crore). Its entire debt was Rs 166 crore as of June FY24.
Motisons Jewellers : Over the last three years, the family-run jewelry company Chhabra in Jaipur has experienced a significant rise in income; in the last two years, net profit has doubled.
Sales in the fiscal year that ended in March of FY23 increased 16.5 percent to Rs 366.2 crore, compared to the previous year, while net profit rose 50.5 percent to Rs 22.2 crore. EBITDA increased by 26.9 percent yearly to Rs 49 crore, while the margin increased by 109 basis points to 13.37 percent.
However, there are risks that need to be carefully considered. SEBI is looking into Sanjay and Sandeep Chhabra, the company’s promoters, for allegedly placing bets on IPL cricket matches. According to the RHP, the promoter group company was the subject of an investigation because it was allegedly engaged in fraudulent activities.
Moreover, Jaipur is home to four of the company’s stores, so any unfavorable local developments could affect profits.
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