Motisons Jewellers Limited

About Motisons Jewellers Limited  Incorporated in 1997, Motisons Jewellers Limited is a jewellery retailer, primarily operating in Rajasthan. It sells jewellery made of gold, diamond, kundan, pearl, silver, platinum, precious and semi-precious stones, gold and silver coins, utensils and other artefacts. The company has more than two decades of experience in the jewellery industry.  Its first outlet, the ‘Traditional Store’ was set up in 1997, and it now operates four showrooms under the Motisons brand, located across the city of Jaipur, Rajasthan. It also sells its products through a website which was launched in 2011 and commenced sales in 2018.  It primarily sources finished jewellery from third-party suppliers located across India. It also employs artisans on a job work basis. Its two manufacturing facilities are located in Jaipur, Rajasthan, for diamond and gemstone studded jewellery.  The designs for its jewellery are developed in-house by a team of seven designers as of 31 October 2023. The company procures raw materials from various suppliers nationwide to ensure optimum prices and mitigate the risk of suppliers' concentration. The company uses extensive market research, data analytics and customer feedback to develop strategy and new designs for marketing.  Between FY21 and FY23, the company saw a CAGR rise of 19% in its revenue from operations and 31% in its profit. Moreover, factors such as the growing middle-class population, improving economic landscape, rising disposable income, seasonal demands, hallmarking developed trust in quality and customary gifting are expected to drive the demand for gems and jewellery products in India, which could benefit the company.  And now, Motisons Jewellers Limited is coming out with its initial public offer (IPO). The entire IPO will be a fresh issue and the money raised will be utilised to repay borrowings, fund capital expenditure and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Motisons Jewellers Limited IPO:     Company Name  Motisons Jewellers Limited Limited   Company Type  Private    Company Established On  1997   Motisons Jewellers Limited IPO Opening Date  18th December 2023    Motisons Jewellers Limited IPO Closing Date  20th December 2023   Motisons Jewellers Limited IPO Allotment Status  21st December 2023    Credit of Shares to the Demat Account  22nd December 2023   Motisons Jewellers Limited IPO Listing Date  26th December 2023    Motisons Jewellers Limited IPO Face Value  ₹10 per share   Motisons Jewellers Limited IPO Lot Size  250 shares    Motisons Jewellers Limited IPO Issue Size  Approx ₹151 crore   Motisons Jewellers Limited IPO to be Listed on  BSE, NSE    Motisons Jewellers Limited IPO Price band  ₹52 – ₹55 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 213 crore  ₹ 314 crore  ₹ 366 crore    Net Profit  ₹ 9.6 crore  ₹ 14.7 crore  ₹ 22.1crore              Here’s a quick look at Motisons Jewellers Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Established brand name with a proven track record of ~25 years.  Strategic location of showrooms as Jaipur, Rajasthan is well-known for manufacturing traditional jewellery.  Diversified product portfolio of over 3,00,000+ jewellery designs under various categories.  Established systems and procedures to mitigate risks and efficiencies in inventory management, quality control, safety and security and procurement of raw materials.  The company has maintained an EBITDA margin of 14%, 12% and 13% in FY21, FY22 and FY23 respectively.   Risks and threats   Heavily dependent on third parties for the supply of its products as 95% of the total goods sold in FY23 were procured from third party suppliers. Hence, any supply issue from a third party provider could impact the company's business.  All showrooms are concentrated in one geography, namely Jaipur, Rajasthan. Meanwhile, the company’s business is also subject to seasonality.  Has availed unsecured loans from its promoters amounting to ₹114 crore as of 31 October 2023.  The company faces competition from unorganised and organised players such as Goldiam International, DP Abhushan, Thangamayil Jewellery and Renaissance Global.  Under-utilisation of manufacturing capacity as manufacturing unit 1 is not used at all in the last three years as the company purchases jewellery from independent third parties.  Operates a capital intensive business that is funded 57%, 55% and 53% through borrowings in FY21, FY22 and FY23 respectively.            Motisons Jewellers Limited IPO details  |Motisons Jewellers Limited IPO date  According to the offer document filed by the company with the SEBI, the Motisons Jewellers IPO’s opening date – in other words, the Motisons Jewellers IPO launch date – will be 18th December 2023. The Motisons Jewellers IPO closing date is 20th December 2023. After this, investors will be updated about the allotment status on 21st December 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 22nd December 2023. The Motisons Jewellers IPO listing date is 26th December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Motisons Jewellers Limited IPO Price Band  The entire IPO is a fresh issue. The Motisons Jewellers IPO price band has been set between ₹52 and ₹55 per share. Interested investors can choose a price within this band to apply for the IPO.  The Motisons Jewellers IPO listing price will be determined on 26th December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges  |Motisons Jewellers Limited IPO Lot size  The Motisons Jewellers IPO details have been declared. The Motisons Jewellers IPO lot size is set at 250 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Motisons Jewellers IPO issue size is approx ₹151 crore.           How to pre-apply for the Motisons Jewellers Limited IPO?  You can pre-apply for the Motisons Jewellers Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Motisons Jewellers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Motisons Jewellers Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Motisons Jewellers Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Motisons Jewellers Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Motisons Jewellers Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Motisons Jewellers LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Motisons Jewellers Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Motisons Jewellers Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Motisons Jewellers Limited IPO  To apply for the Motisons Jewellers Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Motisons Jewellers Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Motisons Jewellers Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.