Motisons Jewellers completes pre-IPO placement, raises ₹33 crore

The retail jewellery company Motisons Jewellers, located in Jaipur, has  raised ₹33 crore during its pre-IPO investment round. The Securities and Exchange Board of India (SEBI), market regulator, approved Motisons Jewellers' initial public offering (IPO) plans last month.

According to an advertisement published in Business Standard and Nafa Nuksan, the company announced on October 21, 2023, that it had completed the Pre-IPO Placement of 6 million shares at an issue price of ₹55 per equity share (plus a premium of ₹45 per equity share) for an amount a total of ₹33 crore through a private placement.

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Individual and institutional investors that participated in the private placement included Sunil Kothari & Sons, Manish Parakh, Isha Parakh, Manish Parakh HUF, Rajesh Kumar Kabra, Jagdamba Coal House, Prabhudas Lilladhar Advisory Services Private Ltd, Readiprint International LLP, and Rajan Propcon Private Ltd.

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Following the board and shareholders' approval at their meetings on September 02, 2023, and September 11, 2023, respectively, the pre-IPO placement took place. 

In accordance with the board resolution passed at its meeting on October 19, 2023, the company has allocated the Equity Shares in the Pre-IPO Placement.

For its IPO, Motisons submitted a draft herring prospectus (DRHP) to the market regulator in March of this year. With a face value of ₹10 per equity share, this is a completely fresh equity share offering up to ₹33.47 million without any offer-for-sale (OFS) component.

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According to the DRHP, the company will use ₹58 crore of the issue's proceeds to pay back current loans it has taken out from scheduled banks, ₹71 crore to cover its working capital needs, and ₹58 crore for other corporate uses.

Motisons Jewellers started operations in 1997 with an approximate 304 square foot shop in Johri Bazaar in Jaipur, Rajasthan. More than 300,000 jewellery styles, including classic, modern, and combination designs for special events, are included in its product portfolio. 

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It currently operates a network of four showrooms under the "Motisons" brand, all spread out over Jaipur. The most recent location opened in Vaishali Nagar in 2021. Its production sites are in Jaipur's Bapu Nagar and Sitapura Industrial Area.

Sandeep Chhabra, Chairman & Whole Time Director, and Sanjay Chhabra, Managing Director, are second-generation entrepreneurs of Motisons Jewellers  who have over 20 years of experience in the jewellery industry.

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