Motisons Jewelers IPO Review – GMP, Pricing, Details & More

Motisons Jewelers IPO Review: Wedding season is approaching and with people shopping for jewellery, there is an opportunity to invest in jewellery. Motisons Jewellers, which specializes in traditional jewelery manufacturing, is launching an initial public offering (IPO) this season.
The IPO will open for subscription on December 18, 2023 and close on December 20, 2023. In this article, we look at Motisons Jewelers IPO review and analyze its strengths, weaknesses, financials, and GMP. Read on to find out!

Motisons Jewelers IPO Review

About Us

Established in October 1997, Motisons Jewelers Limited is engaged in the business of selling jewelery including gold, diamonds, Kundan, pearls, silver, platinum and other metals.

The company offers a wide range of products including traditional, contemporary and combination designs across its various jewelery lines. These pieces are perfect for special occasions such as weddings and festivals, and we offer everyday wear jewelery for all ages, genders and price ranges.

The company currently operates four showrooms under the “Motisons” brand in Jaipur, Rajasthan. The flagship store ‘Motisons Tower’, located on Tonk Road, is a 16,002.06 sq ft store spread over three floors and is dedicated to silver, gold and diamond jewellery. Established in 2021, the latest store is located in Vaishali Nagar, an upscale neighborhood in southwestern Jaipur, Rajasthan.

Apart from selling its products in its showrooms, the company also sells its products through online platforms. We are also organizing virtual appointments to support our customers.

industry information

The Indian gems and jewelery sector is a significant contributor to the Indian economy. This accounts for 7% of the country’s gross domestic product (GDP), according to a Dun and Bradstreet report.

The sector employs over 5 million skilled and semi-skilled workers and contributes around 10-12% to India’s total goods exports, making it the third largest share of goods in the country. The domestic gems and jewelery market was valued at approximately Rs 4.7 trillion in FY 2023, with gold jewelery being the major segment.

Motisons Jewelers IPO – Finance

A look at Motisons Jewelers’ financials shows that its total assets have increased from ₹275.42 crores in March 2021 to ₹348.13 crores in June 2023.

Similarly, revenue also increased from ₹213.06 crores in March 2021 to ₹366.81 crores in March 2023. The company’s net profit increased to ₹22.20 from ₹9.67 Crores in March 2021 and its current net profit margin is 3.53%..

During the June quarter of FY24, the company reported gross revenue and net profit of ₹86.76 crore and ₹5.48 crores respectively.

In terms of returns, ROE is 17.56% and RoCE is 30.04% as of FY23. These ratios indicate good returns on shareholder capital and efficient use of the company’s resources.

The company’s debt-to-equity ratio is 1.20. This means the company has some leverage.

Key players in the market

The following image shows how Motisons Jewelers compares to its market-listed peers.

Company Strengths

• The company has strategically expanded its retail network in Rajasthan, known for traditional jewelery manufacturing. This will help us tap into the growing historical jewelery retail market.
• The company has a product portfolio of over 3,00,000 jewelery designs including gold, diamond and other jewelery products in various price ranges.
• The company has established an effective inventory management system, emphasizing quality control, safety, security and surveillance. Additionally, strategic sourcing of raw materials aims to prevent negative impacts on our financial position and operations.
• The company has leveraged its promoters’ industry experience to establish a reputed jewelery brand in India with a wide customer base. Additionally, the Board of Directors is supported, providing diverse expertise to shape strategic initiatives.

company’s weaknesses

• The Company relies heavily on third parties for the supply of its products. If we are unable to maintain our contracts with such parties or experience disruptions from such suppliers, our business could be adversely affected.
• The company requires intensive working capital for its operations. If we are unable to borrow such capital on reasonable terms, our business could be adversely affected.
• The company faces stiff competition from organized local players leading to price competition.
• If a company fails to utilize its manufacturing facilities to their full potential, it may impact its costs, profitability and ability to absorb fixed costs.
• The Company has high inventory costs due to the nature of its business.

Motisons Jewelers IPO Review – GMP

Shares of Motisons Jewelers Limited were trading at a premium of 109.09% in the gray market on Dec 12, 2023. The stock was lagging at Rs 115. This gives a premium of Rs 60 per share to the ceiling price of Rs 55.

Key IPO Information

promoter: Seed. Mr. Sandeep Chhabra Mr. Sanjay Chhabra Mr. Namita Chhabra Kajal Chhabra, Moti Lal Sandeep Chhabra HUF, Sandeep Chhabra HUF and Sanjay Chhabra HUF

Book Operations Lead Manager: Holani Consultants Private Limited

Proposal registered by: Link Intime India Private Limited

purpose of the problem

IPO proceeds will be utilized for the following purposes:

• Repayment of the company’s existing borrowings from scheduled commercial banks.
• Financing the company’s working capital requirements
• General corporate purposes

Finishing

In this article, we looked at the details. Motisons Jewelers IPO Review. We conclude that although the company’s sales are currently limited to Rajasthan, its expertise in traditional jewelery manufacturing and its strategic expansion in the historic jewelery retail market, combined with its diverse product range, could be an interesting aspect that differentiates the company from its competitors. I did it.

What do you think the future holds for your company? Applying for an IPO? Let us know in the comments below.

Written by Aaron Barth

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