82% Rally From IPO Listing In 8 Months: Jewellery Stock In Focus On Gaining 112% From 52W-Low; Here’s Why

Today, the shares of Motisons Jewellers gained 3 per cent to Rs 191.07 per share from its previous closing of Rs 184.73. The stock's 52-week high is Rs 248.15 and its 52-week low is Rs 88.85.

Motisons Jewellers Ltd, a prominent jewellery retailer based in Jaipur, has announced plans to raise Rs 170 crore through a preferential issue of shares. This move is part of the company's long-term strategy to strengthen its financial position and expand its business operations. The decision was approved by the company's board of directors in a meeting held on August 14, 2024.

The company will raise funds by issuing up to 1 crore fully convertible warrants, which will eventually be converted into an equivalent number of fully paid-up equity shares. These shares will have a face value of Rs 10 each and will be issued to individuals or entities under the 'Non-Promoter, Public Category' at a price of Rs 170 per warrant. This is expected to generate approximately Rs 170 crore in total. The funds raised will bolster Motisons Jewellers' financial resources and fuel its business expansion plans.

The warrants will be issued on a preferential basis, with the payment to be made in cash. Each warrant will allow its holder to subscribe to one equity share and can be exercised in one or more tranches within 18 months from the date of allotment. This flexible approach gives investors the option to convert the warrants into equity shares at any point during the designated period.

In its recent quarterly report, Motisons Jewellers revealed a steady financial performance for the quarter ending in June 2024. The company reported net sales of Rs 88.71 crore, marking a 2.29% increase compared to Rs 86.73 crore in June 2023. Net profit for the quarter saw a more substantial growth, rising by 15.6% to Rs 6.33 crore from Rs 5.48 crore in the same quarter of the previous year.

However, the company's earnings before interest, tax, depreciation, and amortization (EBITDA) declined by 12.21%, falling to Rs 11.07 crore in June 2024 from Rs 12.61 crore in June 2023. Additionally, earnings per share (EPS) decreased to Rs 0.64 from Rs 0.84 in the same period last year.

Established in 1997, Motisons Jewellers Ltd has become a renowned name in the Indian jewellery industry, offering a wide range of products, including gold, diamond, kundan, pearl, silver, and platinum jewellery. With a collection of over 300,000 designs that span traditional, modern, and fusion styles, the company caters to a diverse customer base. It also offers virtual appointments and online marketplaces, showcasing unique products that are not available in physical showrooms.

The company successfully announced an Initial Public Offer of equity shares aggregating to Rs 15,109.05 Lakhs in FY 2023-24. The fresh issue of shares issued by the company in the IPO was open for subscription from December 18, 2023 to December 20, 2023. Pursuant to the IPO, 2,74,71,000 equity shares were issued and allotted to the public under various categories on December 21, 2023. The Financial Year 2023-2024 was one of the significant years as the company achieved a major milestone during the year by going public.

Since the company's shares became public on the BSE and NSE on December 26, 2023, they have been listed at Rs 109 on the NSE, a premium of 98% more than the Rs 55 issue price per share. The share had its BSE debut at Rs 103.90, up 89%. In just eight months, the stock has gained around 82% from its listing price.