Motisons Jewellers IPO
Motisons Jewellers Limited
Motisons Jewellers IPO Details
IPO Open
18 Dec 2023
IPO Close
20 Dec 2023
Price Band
₹52 – ₹55
Issue Size
₹151.09 Cr
Listing on
BSE, NSE
Min. Lot Size
250
Face value
₹10
GMP
₹120
IPO Timeline
IPO Open
18 Dec 2023
IPO Close
20 Dec 2023
Allotment
21 Dec 2023
Refund initiation
22 Dec 2023
Demat transfer
22 Dec 2023
Listing
26 Dec 2023
Key Performance Indicators
Market Cap
₹541.45 Cr
P/E
17.59
EPS
₹3.42
ROE
17.56%
ROCE
30.04%
Sector
Jewellery
Introduction
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About Motisons Jewellers Limited
Motisons Jewellers, established in 1997, was started by Sandeep Chhabra and Sanjay Chhabra in Jaipur, Rajasthan. Initially, they focused on intricate gold, diamond, and kundan designs, catering to the local market. Their unique and exceptional pieces drew attention, making them a renowned brand in Jaipur and India.
Motons expanded their product line to include silver, ornaments, and even articles, aiming to be a one-stop shop for all things jewellery requirements. Today, they have a vast collection of gold, diamond, kundan, and silver jewelry, catering to diverse tastes and budgets. From delicate earrings under ₹5,000 to magnificent sets exceeding ₹25,000, Motisons offers something for every occasion and a varied crowd base.
Motisons expanded beyond Jaipur, setting up stores in other Indian cities like Bengaluru, and Delhi. This geographic expansion and their diverse product line helped them capture a significant market share, especially in the traditional and heritage jewelry segment.
As of today, December 18th, 2023, Motisons Jewellers has 3 physical stores across India:
- Tonk Road, Jaipur
- Johari Bazar, Jaipur – Gold & Diamond Store
- Johari Bazar, Jaipur – Silver Store
However, Motisons understands the evolving jewelry landscape. They’ve embraced modern trends, incorporating contemporary designs into their collections alongside their classic pieces. This adaptability ensures they cater to existing clientele and entice younger generations.
Within the Motisons Jewellers umbrella, you might encounter different collections or product lines targeted toward specific customer preferences or occasions. These could be categorized as:
- Traditional Collection: Featuring intricate gold, diamond, and kundan pieces inspired by Indian heritage and craftsmanship.
- Contemporary Collection: Showcasing modern designs and trends alongside classic elements, appealing to younger generations.
- Silver Collection: Offering a wide range of silver jewelry for everyday wear or special occasions.
- Bridal Collection: Exquisite and elaborate sets designed for the special day.
While it’s difficult to quantify their exact market share due to the fragmented nature of the jewelry industry, Motisons could emerge as a major player. Their brand recognition, wide range of products, and strategic expansion have cemented their position as a leading jeweler in India.
Motisons Jewellers IPO
Motisons Jewellers IPO, a renowned name in India’s exquisite jewelry landscape, gears up for its Initial Public Offering (IPO) on December 18, 2023. This entirely fresh issue of 2.75 crore shares aims to raise Rs. 151.09 crores
Key Details:
- Issue Type: Book Built Issue
- Size: Rs. 151.09 crores
- Composition: Entirely Fresh Issue (2.74 crore shares)
- Subscription Dates: December 18-20, 2023
- Allotment: December 21, 2023 (tentative)
- Listing: December 26, 2023 (tentative)
- Price Band: Rs. 52-55 per share
- Minimum Investment:
- Retail: Rs. 13,750 (250 shares)
- NII: Rs. 206,250 (15 lots)
- bNII: Rs. 1,003,750 (73 lots)
- Lot Size: 250 shares and its multiples
- Book Running Lead Manager: Holani Consultants Private Limited
- Registrar: Link Intime India Private Ltd
Industry Overview
Motisons Jewellers operates in the Indian jewelry market, a sector that has high growth potential and grows at a steady pace every year.
Market Size and Growth:
- The Indian jewelry market boasts a massive size, ranking fifth globally with a valuation exceeding ₹62,500 Crores in 2023.
- It’s projected to grow at a CAGR of 11.7% over the next five years, propelled by factors like rising disposable incomes, urbanization, and evolving consumer preferences.
Market Segments:
- Traditional & Heritage: Motisons’ forte lies in this segment, offering exquisitely crafted gold, diamond, and kundan pieces inspired by Indian heritage.
- Silver: Silver jewelry is gaining traction, and Motisons has dedicated collections for everyday wear and special occasions.
- Bridal: The bridal jewelry segment holds immense significance in India, with Motisons offering elaborate sets for the momentous occasion.
Competitive Landscape:
- The market is fragmented, with numerous players ranging from small, family-run businesses to large, national chains.
- Organized players like Motisons are gaining market share due to their brand recognition, wider product range, and commitment to quality and customer service.
Challenges and Opportunities:
- Gold Price Fluctuations: Motisons, like all jewelers, is susceptible to volatile gold prices, impacting demand and profitability.
- Competition: The fragmented nature of the market fosters intense competition, necessitating constant innovation and differentiation.
- Growth Potential: The booming market presents significant opportunities for Motisons to expand, build their brand, and diversify their offerings.
Peer Analysis
Motisons Jewellers:
- Market Cap (Cr): 541
- Revenue (Cr): 366
- Gross Margin (%): 18
- Net Margin (%): 6
- Inventory Turnover Ratio: 1.0
- Total Debt (Cr): 75
- Strengths:
- Strong local presence in Jaipur
- Growing diamond and silver segment
- Recent IPO for debt reduction
- Weaknesses:
- Limited store network
- High dependence on flagship store
- Low inventory turnover
- High working capital
- Opportunities:
- Increased penetration in other cities
- Expand diamond and silver offerings
- Leverage IPO funds for brand building
Titan Company:
- Market Cap (Cr): 1,44,667
- Revenue (Cr): 26,067
- Gross Margin (%): 53
- Net Margin (%): 12
- Inventory Turnover Ratio: 7.3
- Total Debt (Cr): 553
- Strengths:
- Established national brand
- Diverse product portfolio
- Strong manufacturing capabilities
- Weaknesses:
- Higher operating costs
- Susceptibility to gold price fluctuations
Kalyan Jewellers:
- Market Cap (Cr): 8,997
- Revenue (Cr): 10,985
- Gross Margin (%): 31
- Net Margin (%): 3.4
- Inventory Turnover Ratio: 3.9
- Total Debt (Cr): 1,477
- Strengths:
- Wide network of stores
- Focus on value proposition
- Strong brand recall in South India
- Weaknesses:
- Lower margins compared to peers
- Potential brand dilution with expansion
Rajesh Exports:
- Market Cap (Cr): 14,652
- Revenue (Cr): 16,392
- Gross Margin (%): 7
- Net Margin (%): 3.6
- Inventory Turnover Ratio: 4.6
- Total Debt (Cr): 3,508
- Strengths:
- Global presence in gold jewellery manufacturing
- Large-scale operations
- Diversification into gold bars and coins
- Weaknesses:
- Debt burden
- Dependence on wholesale business
Vaibhav Global:
- Market Cap (Cr): 3,054
- Revenue (Cr): 5,677
- Gross Margin (%): 29
- Net Margin (%): 5.3
- Inventory Turnover Ratio: 3.5
- Total Debt (Cr): 730
- Strengths:
- Focus on regional markets
- Customization options
- Competitive pricing
- Weaknesses:
- Smaller market share compared to larger players
Motisons Jewellers IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Anchor Investors | 6,600,000 |
| QIB | 5,494,200 |
| HNIs | 4,120,650 |
| - > ₹10 Lakhs | 2,747,100 |
| - < ₹10 Lakhs | 1,373,550 |
| Retail Investors | 9,614,850 |
| Total | 25,829,700 |
Motisons Jewellers IPO Lot Size
| Application | Lots |
|---|---|
| Retail (Min) | 1 |
| Retail (Max) | 14 |
| S-HNI (Min) | 15 |
| S-HNI (Max) | 72 |
| B-HNI (Min) | 73 |
Financials of Motisons Jewellers
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 336.51 | 306.53 | 275.42 |
| Revenue | 366.81 | 314.47 | 213.06 |
| Profit After Tax | 22.2 | 14.75 | 9.67 |
| Net Worth | 137.4 | 115.45 | 100.96 |
| Total Borrowing | 164.54 | 151.60 | 141.43 |
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Objective of the IPO
- Repayment of existing borrowings availed by our company from scheduled commercial banks.
- Funding the working capital requirement of our Company.
- General corporate purposes
Legal Issues
- Trade Mark Disputes:
- Infringement lawsuit by Titan Company in 2011 (settled out of court)
- Alleged copying of designs in 2020 (outcome unclear)
- Consumer Complaints:
- Hallmark irregularities, misrepresentation of gold purity, poor customer service
- IPL Betting Scam (2013):
- Promoters (Agarwal brothers) named in police complaint
- Alleged involvement in betting syndicate (never charged or convicted)
Motisons Jewellers IPO Subscription Status
| Category | Subscription Times |
|---|---|
| Qualified Institutional Buyers | 115.97x |
| Retail Individual Investor | 69.67x |
| Non-Instituional Investor | 66.51x |
| Others | 29.21x |
| Total | 93.52x |
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