Motisons Jewellers, a retail jewellery player based in Jaipur, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO) consisting of a fresh issue of 3,34,71,000 equity shares with no offer for sale component. The issue has a face value of Rs 10 per equity share, and it is being made through the Book Building Process. Not more than 50% of the offer shall be available for allocation to Qualified Institutional Buyers, while not less than 15% of the offer shall be available for allocation to Non-Institutional Bidders, and not less than 35% of the offer shall be available for allocation to Retail Individual Bidders.

The company may consider a pre-IPO placement of up to 60,00,000 equity shares for cash consideration, which would reduce the fresh issue size. The proceeds from the IPO, worth Rs 58 crores, will be used to repay existing borrowings availed by the company from scheduled commercial banks, Rs 71 crore for funding working capital requirements, and for general corporate purposes.

Motisons Jewellers is run by second-generation entrepreneurs Sandeep Chhabra, Chairman & Whole Time Director, and Sanjay Chhabra, Managing Director, sons of Late Moti Lal Chhabra, with over two decades of expertise in the jewellery industry. The company began operations in 1997 by opening a showroom in Johri Bazaar in Jaipur, Rajasthan. Currently, it has four showrooms under the “Motisons” brand, located across Jaipur, with the most recent outlet opened in Vaishali Nagar in 2021. Its product portfolio comprises over 300,000+ jewellery designs that include traditional, contemporary, and combination designs for special occasions and daily wear jewellery for all ages, genders, and price points.

In addition, the jeweller launched its website in 2011 and commenced online sales in 2018 to serve younger and tech-savvy customers. Motisons Jewellers also arranges virtual appointments to assist its customers. The company recorded a profit of Rs 14.75 crore in FY22 against Rs 9.67 crore in the previous year, with its revenue from operations climbing 47.55% from Rs 213.04 crore in FY21 to Rs 314.33 crore in FY22, attributable to an increase in the sale of jewellery.

According to the CareEdge Report in its DRHP, Motisons Jewellers recorded the second-best Debt EBITDA ratio of 3.91 amongst its listed peers in India in FY22. Its Debt to Equity Ratio has fallen from 1.50 in 2020 to 1.28 as on September 30, 2022. Furthermore, the Indian jewellery market is traditionally dominated by gold jewellery, with the G&J industry’s market size estimated to close at USD 60 billion in CY21.