Investing in an Initial Public Offering (IPO) requires careful consideration and understanding of various aspects. Motisons Jewellers, a renowned jewellery brand, is set to launch its IPO, and here’s a detailed guide to help you make informed decisions.
1. IPO Overview:
Motisons Jewellers is offering a fresh issue of 2.75 crore equity shares, aiming to raise Rs 151 crore. The IPO opened on December 18, 2023, and will close on December 20, 2023.
2. Price Band:
The price band for Motisons Jewellers IPO is set at Rs 52-55 per share. Investors can bid for a minimum of 250 shares, with a minimum investment of Rs 13,000 at the lower price band.
3. Offer Details:
The company plans to utilize the IPO proceeds for debt repayment (Rs 58 crore) and working capital requirements (Rs 71 crore). The remaining funds will be allocated for general corporate purposes.
4. Financial Performance:
In FY23, Motisons reported a robust financial performance with a 50.5% increase in net profit (Rs 22.2 crore) and a 16.5% growth in revenue (Rs 366.2 crore).
5. Subscription Details:
As of day one, the IPO has been subscribed 8.59 times overall, with the retail portion witnessing a substantial 13.46 times subscription and the NII portion 6.48 times.
6. Risks Involved:
Motisons Jewellers faces potential risks, including geographical concentration in Jaipur and dependency on third-party suppliers. These factors may impact business operations.
7. IPO Timeline:
The IPO allotment is likely to take place on December 21, 2023, following the T+3 listing rule. The tentative listing date on BSE and NSE is December 26, 2023.
8. Market Sentiments:
Market observers report a grey market premium of Rs 105 on Motisons Jewellers shares, indicating positive sentiments among investors.
9. Expert Recommendations:
Financial experts provide varying opinions. Arun Kejriwal suggests subscribing for listing gains, anticipating a consolidation post a positive debut. Dhruv Mudaraddi recommends subscribing for listing gains but advises reconsideration based on sustained financial performance.
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