Motisons Jewellers Ltd IPO Timeline

Motisons Jewellers Ltd IPO opens on 18-Dec-2023, and closes on 20-Dec-2023. The Motisons Jewellers Ltd IPO bid date is from 18-Dec-2023 to 20-Dec-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Motisons Jewellers Ltd IPO Opening Date 18-Dec-2023
Motisons Jewellers Ltd IPO Closing Date 20-Dec-2023
Basis of Allotment 21-Dec-2023
Initiation of Refunds 22-Dec-2023
Credit of Shares to Demat 22-Dec-2023
Motisons Jewellers Ltd IPO Listing Date 26-Dec-2023

Motisons Jewellers Ltd IPO Lot Size

Motisons Jewellers Ltd IPO lot size is 250 shares. A retail-individual investor can apply for up to 14 lots (3500 shares or 192500).

Application Lots Shares Amount
Minimum 1 250 ₹13750
Maximum 14 3500 ₹192500

Motisons Jewellers Ltd IPO Details

Motisons Jewellers Ltd IPO Date 18-Dec-2023 to 20-Dec-2023
Motisons Jewellers Ltd IPO Face Value Shares of ₹10 per share
Motisons Jewellers Ltd IPO Price ₹52 to ₹55 per share
Motisons Jewellers Ltd IPO Lot Size 250
Issue Size Shares of ₹10 (aggregating up to ₹151.09 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹151.09 Cr)
Offer for Sale -
Issue Type Book Built Portion
Listing At BSE, NSE
QIB Shares Offered Not more than 4712750
Retail Shares Offered Not less than 10662250
NII (HNI) Shares Offered Not less than 5496000
Company Promoters Sandeep Chhabra, Sanjay Chhabra, Namita Chhabra.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Repaymet of existing borrowings availed by the company from schduled commercial bank
  • 2 Funding the working capital requirement of the company
  • 3 General corporate purposes

Company Financials

Motisons Jewellers Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 336.51 366.81 22.20
03-2022 306.53 314.47 14.75
03-2021 275.42 213.06 9.67
Amount in ₹ Crore
  • We have an established brand name with heritage and a legacy of over two decades.
  • Strategic location of its showrooms.
  • Diversified product portfolio of over 3,00,000+ Jewellery Designs under various categories such as Gold/Diamond Bangles, Necklaces, Earrings, Pendants, Rings and Chains and Silver Items with price points.
  • Established systems and procedure to mitigate risks and efficiencies in inventory management. Quality control Technology focus. safety, security and Surveillance Systems and Procurement of raw materials to avoid the adverse affects of the same on the financial conditions and operations of the company.
  • Promoters with strong leadership and a demonstrated track record supported by a highly experienced and accomplished senior management team and board of directors.
  • The company is heavily dependent on third parties for supplying its products. The company may be unable to maintain or establish formal arrangements with such third parties, and any disruptions at such third-party production or manufacturing facilities and their supply chains arrangements, or failure of such third parties to adhere to the relevant quality standards may have a negative effect on its reputation, business and financial condition.
  • Its Promoters, Sanjay Chhabra and Sandeep Chhabra, in past, were involved in proceedings initiated by investigation agency in relation to betting in the cricket matches of Indian Premier League. Though they have been duly discharged, any re-opening of matter could have an adverse impact on its business and reputation.
  • Four (4) of its Promoters, Sanjay Chhabra, Sandeep Chhabra and Kajal Chhabra and Motisons Entertainment (India) Private Limited and three (3) members of its Promoter Group, Motisons Shares Private Limited and Motisons Commodities Private Limited and Bholenath Real Estate Private Limited, are involved in proceedings involving SEBI and/or the Stock Exchange and other regulatory authorities. In the event SEBI or any other regulatory authority passes any unfavorable order imposing a penalty or debarment of the four (4) promoters or three (3) members of its Promoter Group from accessing the capital market, the same may have an impact on the business and reputation of the Company.
  • In the past, two (2) of its Promoters, Sanjay Chhabra and Sandeep Chhabra and eight (8) of its Promoter Group Members have contravened the provisions of the SEBI Act and Regulations made thereunder for which SEBI imposed penalties in nature of fine amounting to Rs. 5,00,000 each on its Promoters and the total fine of Rs. 34,00,000 on eight (8) members of its Promoter Group and temporary debarment from accessing capital market of its promoter group company Motisons Commodities Private Limited during the period 20.08.2015 to 05.04.2018. Post 05.04.2018, there were no debarment of any promoter or member of promoter group or any directors. In one (1) matter, its two (2) Promoters have been acquitted also. If any such violation occurs in future, it may affect its goodwill and future aspects.
  • The company has availed unsecured loans from its promoters and members of promoter group carrying 11.60% Average Rate of Interest and secured loans from scheduled commercial banks and FIs carrying 8.58% Average Rate of Interest. Its making prepayment of borrowings other than auto loans from scheduled commercial banks from the proceeds of IPO carrying lessor Rate of Interest over borrowings availed from promoter and promoter group.
  • All its four (4) showrooms are in one geography namely Jaipur, Rajasthan. Any adverse development affecting such a region may have an adverse effect on its business, prospects, financial condition, and results of operations.
  • All its four (4) showrooms, including its registered office and one of its manufacturing facilities are taken on lease from the company promoters and members of its promoter group and the Company pays Rs. 285.80 Lakhs annually towards the lease or rent of these properties to its promoters and members of the company promoter group.
  • The company face competition in the markets in which its operate and may not be able to effectively compete in the future.
  • Under-utilization of manufacturing capacity may have a negative impact on the future financial condition of the Company.
  • Any customer complaints or negative publicity or concerns pertaining to purity and quality of its gold/ jewellery, making charges or hall markings or relating to any failure in its quality control processes, may have an adverse effect on its business, brand, results of operations and financial condition.
  • The company has in the past entered related party transactions and may continue to do so in the future.
  • All its four (4) showrooms, including the company registered office and one of its manufacturing facility are on lease premises owned by its promoters and promoter group companies and one of which is located in residential area. If the company fail to renew these leases or if its unable to manage its lease rental costs and any objection by competent authority/resident for carrying commercial activity on residential area, its results of operations would be materially and adversely affected.
  • The company could face customer complaints or negative publicity about its customer service.
  • If the low-capacity utilization of its manufacturing units continues, the component of the costs in the operations of the manufacturing units as on June 30, 2023 and March 31, 2023 amounts to Rs. 21.32 Lakhs and 91.57 Lakhs which is 0.25% and 0.23% of our total revenue. This will adversely affect the profits of the company, ultimately impacting its financial strength and it would lead to increasing dependency on the performance of its trading business.
  • Its ability to attract customers is dependent on the success and visibility of the company showrooms.
  • The company has significant working capital requirements which are funded 53.15%, 53.80%, 55.87%, and 57.39% through borrowings for the period June 30, 2023, and for the fiscal years 2023, 2022 and 2021. If its unable to secure adequate borrowings on commercially reasonable terms it could have a material adverse effect on its business, financial condition and results of operations.
  • Its inventory holding is 381.31%, 87.47%, 90.27% and 112.58% of its revenue and the company Inventory turnover days are 417, 364, 360 and 494 for the period ending on June 30, 2023, and for the fiscal years 2023, 2022 and 2021. High inventory holdings and inventory turnover days will affect its ability to respond to changes in consumer demands and market trends in a timely manner, which may impact its operations adversely.
  • The Company has availed unsecured loans from Promoters, Directors, Promoter Group entity, Group Companies and other companies, aggregating to Rs. 11,225.41 Lakh as of June 30, 2023, that are repayable on demand, and which may be recalled by such lenders at any time. The Company has paid interest ranging from 9% p.a. to 12% p.a. on these loans. The funds were utilized to meet its working capital requirements, as certified by the company Statutory Auditor. However, if lenders demand repayment, its may face difficulty finding alternative sources of financing, which could negatively impact its business, financial condition, and results of operations.
  • Its failure to recoup funds that have been designated as debts and payment defaults from its debtors may negatively impact the company operational performance.
  • Seven (7) of its Promoters and two (2) members of its Promoter Group have provided personal/ corporate guarantees for secured loan facilities obtained by it, and any failure or default by the company to repay such loans could trigger repayment obligations on its Promoters and members of the Promoter Group, which may also impact its Promoter's ability to effectively service its obligations as its Promoter and thereby, adversely impact the company's business and operations.
  • The company in past made delays in making timely payment of Provident Fund contributions for all eligible employees. This non-compliance with statutory obligations may lead to potential legal and financial repercussions, including penalties, interest charges, and possible litigation. This could impact its ability to attract and retain talent, operational continuity, and overall business performance.
  • The Company, Promoters and Directors are involved in certain legal proceedings. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business and results of operations.
  • The strength of its brand is crucial to the company's success, and its may not succeed in continuing to maintain and develop its brand. The company Expenditure on advertisement & brand promotion expenses - Print Media, Electronic, Digital etc. is 0.04%, 0.20%, 0.21% and 0.11% of its revenue for the period ended on June 30, 2023 and for the Fiscal Years ended on March 31, 2023, 2022 and 2021.
  • High inventory costs may adversely impact its business and financial conditions of the Company.
  • The Company anticipates a projected working capital requirement of Rs. 36,721.49 lakhs in the fiscal year 2023-24, reflecting a notable increase of 24.09% from the preceding year. This augmentation primarily stems from elevated levels of inventories and other financial and current assets, coupled with a reduction in trade payables.
  • Certain sections of this Red Herring Prospectus disclose information from the industry report which has been commissioned and paid for by it exclusively in connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
  • Its management will have deploy net proceeds pending utilization for objects to issue in scheduled commercial banks and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment. Any variation in the utilisation of the Net Proceeds or in the terms as disclosed in the Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
  • The agreements governing its indebtedness contain conditions and restrictions on the company operations, additional financing and capital structure.
  • The company is required to obtain, renew or maintain certain statutory and regulatory permits and approvals required to operate its business. Non-compliance with existing or changes to environmental, health and safety, labour laws and other applicable regulations by it may adversely affect its business, financial condition, results of operations and cash flows.
  • The occurrence of natural or man-made disasters or outbreak of global pandemics, such as the COVID-19 pandemic, could adversely affect its results of operations, cash flows and financial condition. Hostilities, terrorist attacks, civil unrest and other acts of violence could adversely affect the financial markets and its business.
  • Any failure of or disruption to its information technology systems could adversely impact the company's business and operations.
  • Its income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.
  • The non-availability or high cost of quality gold bullion and other precious and semi-precious stones may have an adverse effect on its business, results of operations and financial condition.
  • Its business depends on the company Promoters and senior management and its ability to attract and retain sales personnel.
  • Its may not be able to protect the company trademarks from infringement.
  • The company may fail to protect its jewellery designs.
  • Most of its Directors does not have any prior experience of being a director in any other listed company in India.
  • Its Promoter, Directors or key management personnel have interests in the Company, other than reimbursement of expenses incurred or normal remuneration or benefits.
  • Its may be subject to fraud, theft, employee negligence or similar incidents.
  • Its may be subject to labour unrest, slow downs and increased wage costs.
  • Its insurance may be insufficient to cover all losses associated with its business operations.
  • If the company is unable to protect credit card or debit card data or any data related to any other electronic mode of payment, or any other personal information that its collect, the company reputation could be significantly harmed.
  • The company has contingent liabilities.
  • Certain of its Promoters are directors of many other entities and the activities of such companies may cause diversion of their attention from the Company. Further, any conflict of interest which may occur between its business and the activities undertaken by such entities could adversely affect its business and prospects. Conflicts of interest may arise out of common business objects between the Company and Group Companies.
  • Its ability to pay dividends or conduct share buybacks in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and lender consents and its cannot assure you that the company will be able to pay dividends or conduct Share buybacks in the future.
  • The company has included certain non-GAAP financial and operational measures related to its operations and financial performance that may vary from any standard methodology that may be applicable across the industry in which the company operate, and which may not be comparable with financial, operational or industry related statistical information of similar nomenclature computed and presented by similar companies.
  • Continue to expand its retail network in a cost-efficient manner by leveraging its `Motisons' brand.
  • Focus on expanding its product and brand portfolio to cater to existing portfolio gaps and increase its consumer reach.
  • Leverage technology to grow its operations and focus on online channels.
  • Continue to invest in its marketing and brand building initiatives.

Motisons Jewellers Ltd IPO Promoter Holding

Pre Issue Share Holding 91.50%
Post Issue Share Holding 65.95%

Motisons Jewellers Ltd IPO Subscription Status (Bidding Detail)

The Motisons Jewellers Ltd IPO is subscribed 159.61 times on Dec 20, 2023 05:00:00 PM. The public issue subscribed 122.28 times in the retail category, 157.4 times in the QIB category, and 233.91 times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) 157.4 233.91 122.28 - 159.61

Motisons Jewellers Ltd IPO Prospectus

Motisons Jewellers Ltd IPO Listing Date

Listing Date 26 Dec 23
BSE Script 544053
NSE Symbol MOTISONS
Listing In BSE, NSE
ISIN INE0FRK01012
IPO Price ₹55
Face Value ₹10

Motisons Jewellers Ltd IPO Registrar

Link Intime India Pvt Ltd

Phone: +91 22 49186200
Email: motisons.ipo@linkintime.co.in
Website: www.linkintime.co.in

Motisons Jewellers Ltd IPO Lead Manager(s)

  1. Holani Consultants Pvt Ltd

FAQs on Motisons Jewellers Ltd IPO

Motisons Jewellers Ltd IPO, which opens for subscription from 18-Dec-2023 to 20-Dec-2023 has an issue size of ₹151.09 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Motisons Jewellers Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Motisons Jewellers Ltd IPO Opens for subscription from 18-Dec-2023 to 20-Dec-2023.

The lot size of Motisons Jewellers Ltd is 250 shares. Retail investors can subscribe to minimum 1 lot and maximum 14 lots. The minimum and maximum application value is ₹13750 and ₹192500 respectively.

Allotment date for Motisons Jewellers Ltd is 21-Dec-2023 and refund of application amount (in case allotment is not received) will begin from 22-Dec-2023. If your allotment goes through, then shares will be credited in your Demat account by 22-Dec-2023.

The registrar for Motisons Jewellers Ltd IPO is Link Intime India Pvt Ltd. You can check your IPO allotment status on the registrar's website.

The shares of Motisons Jewellers Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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