Motisons Jewellers, a Jaipur-based jewellery retailer, made a strong debut on the stock exchange with its Initial Public Offering (IPO) open for subscription from December 18, 2023, to December 20, 2023. The IPO comprised a fresh issue of up to 2,74,71,000 equity shares of face value of ₹10 each, with a price band set at ₹52 to ₹55 per equity share. The IPO was oversubscribed 159.61 times, indicating strong investor interest. The allotment for the IPO was finalized on December 21, 2023, and the shares were listed on the BSE and NSE on December 26, 2023.
On the day of listing, the shares of Motisons Jewellers soared 98% above their issue price, despite concerns about promoter investigations and regional concentration. The Grey Market Premium (GMP) for the shares was ₹105, indicating that the shares were available at a significant premium in the grey market. The company has a history of more than two decades in the jewellery industry, selling a variety of jewelry, including gold, diamond, Kundan, pearl, silver, platinum, precious, semi-precious stones, and other metals. The company operates four outlets in Jaipur, Rajasthan.
Despite the strong debut, the issue appears fully priced based on FY24 annualized super earnings. The company operates in a highly competitive and fragmented segment of the jewellery business, so well-informed investors may park moderate funds for the medium term. In conclusion, Motisons Jewellers made a strong debut on the stock exchange, with its shares soaring 98% above their issue price on the day of listing. However, considering the competitive nature of the jewellery business and the fully priced issue, investors are advised to make informed decisions.
In summary, Motisons Jewellers made a strong debut on the stock exchange, with its shares soaring 98% above their issue price on the day of listing. The company’s IPO was oversubscribed, indicating strong investor interest. However, investors should be aware that investing in IPOs involves risk, and it is important to do thorough research and consider their financial situation and risk tolerance before making investment decisions.