Motisons Jewellers
Book Building issueMainboard₹151 Cr issue
+88.91%
Listing gain over issue price
Issue size
₹151 Cr
1 lot at cut-off
₹13,750
Lot size
250shares
Open
18 Dec 2023
Close
20 Dec 2023
Allotment
21 Dec 2023
Listing
26 Dec 2023
Listing performance
Issue price
₹55
Listed at
₹103.90
Listing-day close
₹103.55
Latest price
—
Listing gain
+88.91%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Dec 2023 – 20 Dec 2023
- Listing date
- 26 Dec 2023
- Face value
- ₹10 per share
- Issue price
- ₹55 per share
- Lot size
- 250 shares
- Issue type
- Book Building issue
- Total issue size
- ₹151 Cr
- Market cap at offer price
- ₹541 Cr
- Promoter holding
- 91.55% → 65.99% pre-issue → post-issue
- ISIN
- INE0FRK01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Holani Consultants Pvt.Ltd.
- Registered office
- 270, 271, 272 & 276, Johri Bazar, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 66,00,000 | — | — |
Application size
Minimum 250 shares per lot, in multiples, at ₹55
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 250 | ₹13,750 |
| Retail (max) | 14 | 3,500 | ₹1,92,500 |
| S-HNI (min) | 15 | 3,750 | ₹2,06,250 |
| S-HNI (max) | 72 | 18,000 | ₹9,90,000 |
| B-HNI (min) | 73 | 18,250 | ₹10,03,750 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
66,00,000
Anchor portion
₹36.30 Cr
at ₹55 per share
Valuation and performance
Valuation at offer price
₹55 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.42 | — |
| P/E (×) | 16.08 | — |
| Market cap | — | ₹541 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 16.15%
- ROCE
- 30.04%
- Debt / equity
- 3.32
- PAT margin
- 6.06%
- NAV per share
- ₹21.15
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Motisons Jewellers
Motisons Jewellers Limited is a leading jewellery brand in Jaipur, Rajasthan, led by entrepreneurs Mr. Sandeep Chhabra and Mr. Sanjay Chhabra with over 20 years of experience. The company started as a partnership firm in 1997 from its first showroom in Johri Bazar, Jaipur (the 'Traditional Store'), and was converted to a public limited company in 2011. It operates 4 showrooms in Jaipur, including a flagship 16,002.06 sq ft showroom at Motisons Tower with 3 dedicated floors for silver, gold, and diamond jewellery. The company offers over 300,000+ jewellery designs across different price points, hallmarks all gold products to Bureau of Indian Standards specifications, and sells products through both physical showrooms and online platform at www.motisonsjewellers.com. Revenue composition for FY 2022-23 included Gold & Diamond Jewellery (91.08%), Silver Articles & Jewellery (8.52%), and Gold Bullion (1.95%).
Company Analysis
from RHPMotisons Jewellers is a hyperlocal jewellery retail chain based in Jaipur, Rajasthan, operating 4 showrooms and selling gold, diamond, kundan, silver, platinum and precious stone jewellery.
Motisons Jewellers Limited is a leading jewellery brand in Jaipur, Rajasthan, led by entrepreneurs Mr. Sandeep Chhabra and Mr. Sanjay Chhabra with over 20 years of experience. The company started as a partnership firm in 1997 from its first showroom in Johri Bazar, Jaipur (the 'Traditional Store'), and was converted to a public limited company in 2011. It operates 4 showrooms in Jaipur, including a flagship 16,002.06 sq ft showroom at Motisons Tower with 3 dedicated floors for silver, gold, and diamond jewellery. The company offers over 300,000+ jewellery designs across different price points, hallmarks all gold products to Bureau of Indian Standards specifications, and sells products through both physical showrooms and online platform at www.motisonsjewellers.com. Revenue composition for FY 2022-23 included Gold & Diamond Jewellery (91.08%), Silver Articles & Jewellery (8.52%), and Gold Bullion (1.95%).
Jewellery RetailGems and Jewellery
Objects of the Issue
- Repayment of existing borrowings availed by our company from scheduled commercial banks 5,800.00 p.22
- Funding the working capital requirement of our Company 7,100.00 p.22
- General corporate purposes p.22
- Repayment of existing borrowings availed by the company from scheduled commercial banks p.72
- Funding working capital requirements p.72
- General corporate purposes p.72
- Repayment of existing borrowings availed by our company from scheduled commercial banks ₹5,800.00 lakhs p.130
- Funding the working capital requirements of our Company ₹7,100.00 lakhs p.133
- General corporate purposes p.137
- No specific objects of issue mentioned in this document section
Issue Structure
- Total Issue
- Up to 2,74,71,000 Equity Shares aggregating up to ₹ [●] Lakhs
- Fresh Issue
- Up to 2,74,71,000 Equity Shares aggregating up to ₹ [●] Lakhs
- Offer for Sale
- NIL
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 10/-
Business Model
The company operates a retail jewellery business with revenue primarily from trading of finished jewellery products (87.55% of FY 2022-23 revenue), supplemented by job-work services (7.95%) and in-house manufacturing (4.50%). The company procures 99.84% of goods from third-party suppliers and job-workers. It generates revenue through sales at physical showrooms and online sales.
Business Segments
Sale of jewellery made of gold and diamond
Sale of silver jewellery and silver articles
Sale of gold bullion
Retail sale of gold jewellery purchased from third parties
Retail sale of diamond and gemstone jewellery purchased from third parties
Retail sale of silver jewellery purchased from third parties
In-house manufactured and sold gold jewellery
In-house manufactured and sold silver jewellery
Sale of jewellery made of gold and diamonds including bangles, necklaces, earrings, pendants, rings, and chains
Sale of jewellery and articles made of silver
Sale of gold bullion products
Manufacturing of diamond and gemstone studded jewelry through in-house facilities and job-work arrangements with artisans
Manufacturing of gold jewelry through in-house facilities and job-work arrangements
Manufacturing of silver jewelry and articles through in-house facilities and job-work arrangements
Trading of gold jewelry sourced from third-party manufacturers and suppliers
Trading of diamond and gemstone studded jewelry from third-party suppliers
Trading of silver jewelry and articles from suppliers
Manufacture and retail of gold, silver, and diamond jewelry
SWOT Analysis
Strengths
- • Experienced promoter leadership with 20+ years in jewelry business(p.21)
- • Strong product portfolio and quality assurance(p.21)
- • Established multi-location presence in Jaipur with flagship showroom(p.21)
- • Online retail capability complementing physical presence(p.21)
- • Strong profitability metrics and return on equity(p.24)
- • Diversified product portfolio and established brand presence(p.98)
- • Strategic showroom locations and flagship store with significant floor space(p.98)
- • Quality assurance through BIS hallmarking of all gold products(p.98)
- • Omnichannel distribution including e-commerce platform(p.98)
- • Experienced promoters with 20+ years in jewellery business(p.98)
- • Established brand with heritage spanning over two decades(p.143)
- • Strategic showroom locations in Jaipur(p.143)
- • Diversified product portfolio with 300,000+ designs(p.143)
- • Established risk mitigation and inventory management systems(p.143)
- • Strong promoter leadership with experienced management team(p.143)
- • Established brand with 25+ year heritage and proven track record(p.207)
- • Strategic locations in prime Jaipur markets with logistical convenience(p.207)
- • Diversified product portfolio of 300,000+ designs across price points(p.208)
- • Stringent quality control and hallmarking processes ensuring customer trust(p.207)
- • Integrated technology infrastructure with POS, RFID, and CRM systems(p.209)
- • Experienced promoters with 20+ years industry expertise and committed senior management(p.211)
- • Efficient inventory management with rotation across showrooms and data-driven forecasting(p.209)
- • Experienced management team with multi-decade jewelry business background(p.246)
- • Multiple award-winning brand with industry recognition(p.239)
- • Established retail footprint with owned and leased properties(p.238)
- • In-house manufacturing capacity established(p.238)
- • No history of defaults or significant project delays(p.239)
- • Established brand with over 20 years of industry experience and trusted positioning centered on transparency(p.361)
- • Diversified product portfolio across gold, diamond, kundan, silver, and other precious metals and stones(p.361)
- • Multi-channel distribution through physical showrooms and online platform(p.363)
- • Strong revenue growth trajectory with 19.79% CAGR from FY2021 to FY2023(p.365)
- • Profitable operations with PAT CAGR of 31.90% from FY2021 to FY2023(p.365)
Weaknesses
- • Heavy dependence on third-party suppliers without formal agreements(p.40)
- • Complete geographic concentration in single state(p.55)
- • Dependence on related party leases for retail operations(p.56)
- • High leverage with significant debt burden(p.24)
- • Promoter involvement in regulatory proceedings and past penalties(p.27)
- • Significant contingent liabilities related to tax demands(p.28)
- • Severely underutilized in-house manufacturing capacity(p.57)
- • Extremely high inventory holding relative to revenue(p.64)
- • High debt-to-equity ratio compared to some peers(p.63)
- • Significant reliance on unsecured loans from promoters repayable on demand(p.65)
- • Lack of statutory approvals for one manufacturing facility(p.75)
- • Multiple lease agreements on short-term basis with termination clauses(p.60)
- • Past delays in Provident Fund contributions to employees(p.68)
- • Promoters and directors involved in multiple litigation proceedings(p.68)
- • High inventory-to-asset ratio of 95% indicating significant working capital requirements(p.133)
- • Very high inventory turnover days of 417 days indicating slow-moving inventory(p.133)
- • High debt-to-EBITDA ratio of 13.17x as of June 30, 2023(p.148)
- • Significant unsecured borrowings from promoters and related entities totaling ₹11,887.27 lakhs(p.132)
- • Business concentrated in Jaipur with four retail showrooms(p.134)
- • Geographic concentration limited to Jaipur, Rajasthan with 4 showrooms only(p.204)
- • Heavy reliance on third-party suppliers and job workers for majority of manufacturing(p.205)
- • Minimal online sales revenue despite online platform launch in 2011(p.219)
- • Limited scale with only 151 employees and 4 retail showrooms(p.223)
- • Manufacturing capacity underutilized at SEZ facility with zero production in recent years(p.216)
- • High reliance on short-term borrowings(p.291)
- • Concentrated promoter and family ownership(p.265)
- • High finance costs indicating significant debt burden(p.292)
- • Young and relatively inexperienced joint managing director(p.246)
- • Heavy dependence on third-party suppliers for raw materials and finished goods(p.372)
- • High financial leverage with substantial unsecured loans from promoters and related parties(p.360)
- • Significant working capital tied up in inventory which represents a large portion of current assets(p.319)
- • High finance costs as a percentage of revenue, indicating elevated debt servicing burden(p.368)
- • Contingent liabilities including tax demands totaling ₹1,134.51 Lakhs(p.381)
- • Heavy dependence on third-party suppliers for raw materials and finished goods(p.384)
- • High concentration of supplier base with top 10 suppliers accounting for majority of purchases(p.384)
- • Significant exposure to legal metrology compliance violations(p.385)
- • Promoters subject to past SEBI penalties and investigations(p.395)
- • Pending litigation involving promoters regarding land acquisition(p.387)
Opportunities
- • Expanding geographic presence beyond Jaipur(p.21)
- • Large domestic gems and jewelry market growth(p.21)
- • Digital retail channel expansion capability(p.21)
- • Use of IPO proceeds for debt reduction and working capital optimization(p.22)
- • Expansion within Jaipur market with growing demand(p.98)
- • Growth in organized jewellery retail sector(p.57)
- • Increase in wedding season and festival demand(p.77)
- • Expansion of digital/e-commerce channel for younger customers(p.98)
- • Growing middle-class segment expected to reach 60% by 2047 driving domestic demand(p.170)
- • Per capita income doubling from FY 2015 to FY 2023 improving purchasing power(p.170)
- • India positioned as fastest growing major economy with 7.2% GDP growth in FY 2023(p.163)
- • Growing e-commerce penetration enabling online sales expansion(p.135)
- • Strong government infrastructure focus with 37.4% increase in capital expenditure budgeted(p.163)
- • Global gold jewellery demand showing 68% rebound in 2021 post-COVID with India as leading consumer at 27.42% market share(p.175)
- • Expand showroom network in higher-tier cities leveraging Jaipur brand success(p.211)
- • Capitalize on growing middle-class population and rising disposable income(p.187)
- • Accelerate digital transformation and e-commerce platform development(p.212)
- • Leverage manufacturing capability to serve online and omnichannel growth(p.212)
- • Develop sub-brands and expand product portfolio to tap niche segments(p.212)
- • Benefit from government initiatives supporting organized retail and hallmarking standards(p.203)
- • Growth in organized retail segment with shift from unorganized players(p.179)
- • Capture growing gold demand in India projected to reach 855 tonnes by 2028(p.203)
- • Expansion into new geographies through new showrooms(p.239)
- • Product innovation and design-led market positioning(p.239)
- • Collaboration with renowned designers for market differentiation(p.238)
- • Leverage manufacturing capacity for increased production and margins(p.238)
- • Expansion into new geographic markets to reduce seasonal variations and grow customer base(p.362)
- • Introduction of new product categories and designs to meet evolving customer preferences(p.362)
- • Expansion of online sales channel to capture digitally-savvy and younger customer segments(p.363)
- • Growing demand for jewellery products driven by cultural and religious reasons in Indian markets(p.364)
Threats
- • Supply chain disruptions at third-party manufacturing facilities(p.41)
- • Regional economic downturns and natural disasters in Jaipur(p.55)
- • Intense competition from organized and unorganized players(p.57)
- • Quality control and customer complaint risks(p.27)
- • Risk of re-opening of past IPL betting proceedings against promoters(p.27)
- • Ongoing SEBI and regulatory investigations into promoter group entities(p.27)
- • Manufacturing capacity underutilization(p.27)
- • Intense competition from unorganized and organized jewellery retailers(p.57)
- • Volatility in precious metal and diamond prices(p.78)
- • Risk of quality and purity concerns affecting brand reputation(p.58)
- • Regulatory changes and compliance burden including GST(p.87)
- • Economic downturn and reduced consumer spending on jewellery(p.57)
- • Dependence on gold and precious metal suppliers(p.78)
- • Pandemic and natural disasters affecting operations(p.76)
- • Indian inflation and rising operational costs(p.89)
- • Jewellery fabrication demand volatile with 38% decline in 2020 due to COVID-19(p.175)
- • Global economic uncertainty with advanced economies forecasted to grow only 0.9% to 1.4% in CY 2023-2024(p.161)
- • High inflation and tight monetary policies affecting consumer spending(p.161)
- • Manufacturing sector contraction in India with IIP registering 0.5% growth in FY 2023(p.167)
- • Intense competition from larger organized retail players in jewellery sector(p.176)
- • Rising input costs for precious metals and gemstones impacting margins(p.132)
- • Volatility in gold prices affecting consumer buying patterns and margins(p.192)
- • Intense competition from both organized chains and unorganized players(p.200)
- • Supply chain disruptions and manufacturing delays impacting inventory availability(p.192)
- • Changing consumer preferences requiring continuous product innovation(p.192)
- • Labor shortage and skill availability challenges in artisan workforce(p.192)
- • Import restrictions and regulatory changes affecting gold procurement(p.196)
- • Economic uncertainty and inflation impacting discretionary spending on jewelry(p.203)
- • Cybersecurity risks and potential IT system failures disrupting operations(p.74)
- • Exposure to commodity price volatility (gold, diamonds, precious stones)(p.275)
- • Jewelry industry cyclicality and consumer discretionary spending dependency(p.296)
- • Regulatory and compliance risks in precious metals and stones trade(p.252)
- • Foreign exchange risk on imported precious materials(p.295)
- • Competition in organized and unorganized retail jewelry segments(p.296)
- • Seasonal fluctuations in sales volumes with higher peaks during festivals impacting annual profitability(p.363)
- • Intense competition from multiple competitors in jewellery retail markets(p.364)
- • Volatility in gold prices and foreign exchange rates affecting costs and margins(p.363)
- • Economic slowdowns and changes in consumer spending patterns affecting demand for jewellery(p.364)
- • Regulatory compliance requirements and potential changes in taxation and industry regulations(p.328)
- • Seasonal fluctuations in sales affecting revenue stability(p.383)
- • Exposure to inflation impacting business environment(p.382)
- • Dependence on demand/supply dynamics and government policies(p.383)
- • Promoter group company subject to regulatory penalties and NSE enforcement actions(p.388)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sandeep Chhabra | Promoter | 8.954% | — |
| Mr. Sanjay Chhabra | Promoter | 20.056% | — |
| Ms. Namita Chhabra | Promoter | 8.566% | — |
| Ms. Kajal Chhabra | Promoter | 0.634% | — |
| Motisons Global Private Limited | Promoter | 25.763% | — |
| Motisons Entertainment (India) Private Limited | Promoter | 10.370% | — |
| Moti Lal Sandeep Chhabra HUF | Promoter | 9.045% | — |
| Sandeep Chhabra HUF | Promoter | 5.636% | — |
| Sanjay Chhabra HUF | Promoter | 2.466% | — |
| Sandeep Chhabra | Promoter | — | — |
| Sanjay Chhabra | Promoter | — | — |
| Motisons Global Private Limited | Promoter | 25.763% | — |
| Sanjay Chhabra | Promoter | 20.056% | — |
| Motisons Entertainment (India) Private Limited | Promoter | 10.370% | — |
| Moti Lal Sandeep Chhabra HUF | Promoter | 9.045% | — |
| Sandeep Chhabra | Promoter | 8.954% | — |
| Namita Chhabra | Promoter | 8.566% | — |
| Sandeep Chhabra HUF | Promoter | 5.636% | — |
| Sanjay Chhabra HUF | Promoter | 2.466% | — |
| Kajal Chhabra | Promoter | 0.634% | — |
| Sandeep Chhabra | Promoter/Chairman & Whole Time Director | — | — |
| Sanjay Chhabra | Promoter/Managing Director | — | — |
| Sandeep Chhabra | Promoter | 8.954% | — |
| Sanjay Chhabra | Promoter | 20.056% | — |
| Namita Chhabra | Promoter | 8.566% | — |
| Kajal Chhabra | Promoter | 0.634% | — |
| Moti Lal Sandeep Chhabra (HUF) | Promoter | 9.045% | — |
| Sandeep Chhabra (HUF) | Promoter | 5.636% | — |
| Sanjay Chhabra (HUF) | Promoter | 2.466% | — |
| Motisons Global Private Limited | Promoter Group | — | — |
| Motisons Entertainment (India) Private Limited | Promoter Group | — | — |
| Sanjay Chhabra | Promoter | 21.91% | — |
| Namita Chhabra | Promoter | 9.36% | — |
| Motilal Sandeep Chhabra HUF | Promoter Group | 9.88% | — |
| Sandeep Chhabra | Promoter | 9.78% | — |
| Motisons Entertainment (India) Pvt. Ltd. | Promoter Group | 11.33% | — |
| Motisons Global Pvt. Ltd. | Promoter Group | 28.14% | — |
| Sandeep Chhabra HUF | Promoter Group | 6.16% | — |
| Sanjay Chhabra | Promoter | — | — |
| Sandeep Chhabra | Promoter | — | — |
| Kajal Chhabra | Promoter | — | — |
Leadership
Mr. Sandeep Chhabra · Chairman
Mr. Sanjay Chhabra · Managing Director
Mr. Laksh Chhabra · Joint Managing Director
Mr. Kaustubh Chhabra · CFO
Mr. Naresh Kumar Sharma · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Motisons Jewellers IPO FAQs
What is the lot size of Motisons Jewellers IPO?
The minimum lot size of Motisons Jewellers IPO is 250 shares. One lot costs ₹13,750 at the cut-off price.
When does Motisons Jewellers IPO open and close?
Motisons Jewellers IPO opened for subscription on 18 Dec 2023 and closed on 20 Dec 2023.
What is the listing date of Motisons Jewellers IPO?
Motisons Jewellers IPO listed on 26 Dec 2023.