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The IPO comprises only a fresh issue component of 2.74 crore equity shares. Hence, the entire issue proceeds will go the company.
aipur-based Motisons Jewellers has finalised December 18 as the opening date for its upcoming initial public offering (IPO). The company may be planning to raise around Rs 151 crore via public issue, if the offer price is considered as Rs 55 per share reported at the time of fund raising via pre-IPO placement.
The price band for the offer will be announced in coming days.
The public issue will be closing on December 20, while the anchor book will be opened for a day on December 15.
The IPO comprises only a fresh issue component of 2.74 crore equity shares. Hence, the entire issue proceeds will go the company.
The Jaipur-based Chhabra family-owned jewellery retail company will utilise the net fresh proceeds for repaying debts amounting to Rs 58 crore, and working capital requirements of Rs 71 crore. And the remaining funds will be kept for general corporate purposes.
Before filing the red herring prospectus, the company has raised Rs 33 crore via pre-IPO placement of 60 lakh equity shares at a price of Rs 55 per share. And accordingly, the issue size as disclosed in the draft red herring prospectus, up to 3.34 crore equity shares has been reduced by 60 lakh equity shares to 2.74 crore equity shares.
Half of the offer size has been reserved for qualified institutional buyers, 15 percent for high networth individuals and the remaining 35 percent shares for retail investors.
Motisons Jewellers that started its jewellery business in 1997 with a single showroom in Jaipur and later expanded network to 4 showrooms under the Motisons brand has reported better financial numbers in the past years, with net profit in the year ended March FY23 rising 50.5 percent to Rs 22.2 crore and revenue increasing 16.5 percent to Rs 366.2 crore compared to previous year.
Profit in the first quarter ended June FY24 reported at Rs 5.5 crore on revenue of Rs 86.7 crore.
Meanwhile, after closing the issue on December 20, the company will finalise the basis of allotment of IPO shares by December 21 and the equity shares will be credited to demat accounts of eligible investors by the end of December 22.
Motison will make its debut on the bourses on December 26 due to Christmas holiday on December 25, as per the IPO schedule.This will be the third jewellery retailer coming out with the IPO and listing in the current calendar year, after Senco Gold and Vaibhav Jewellers.
Holani Consultants is the only merchant banker to the issue, while Link Intime India is the registrar to the offer.