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 IPO:
Company Name — Motisons Jewellers Limited
Company Type — Private
Company Established — 1997
IPO Open Date — 18th December 2023
IPO Close Date — 20th December 2023
IPO Allotment Status — 21st December 2023
Credit of Shares to Demat — 22nd December 2023
IPO Listing Date — 26th December 2023
IPO Face Value — ₹10 per share
IPO Lot size — 250 shares
IPO Issue Size — Approx ₹151 crore
IPO Listed at — NSE, BSE
IPO Price — ₹52 – ₹55 per share
- 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.
You can now apply for the Motisons Jewellers IPO on Upstox. Click here.