Motisons hits 20% upper limit as shares begin trading under rolling segment

The stock of Motisons Jewellers hit a new high of Rs 154 on the BSE, and has zoomed 180% against issue price of Rs 55 per share

Shares of Motisons Jewellers were locked in the 20-per cent upper circuit, at Rs 154 on the BSE in Tuesday's intraday trade, after the company started trading in the 'rolling segment' from 'Trade for Trade segment' (T Group) with effect from today. Accordingly, the dealings in the equity shares of the company has shifted under B Group.

On the National Stock Exchange (NSE), the stock hit a high of Rs 156.75 in the intraday trade. Till 11:29 AM, a combined 7.73 million equity shares, representing 7.9 per cent of the total equity of Motisons, had changed hands on the NSE and BSE.

With today's surge, Motisons share price has zoomed 180 per cent as against its issue price of Rs 55 per share. The company made its stock market debut on December 26, 2023. The stock hit 5-per cent upper circuit for seven consecutive trading days till yesterday.

The Rs 151-crore public issue had received robust response with the issue getting subscribed 173 times as all categories of investors showed strong participation in the IPO. High networth individuals picked 312 times the allotted quota, qualified institutional buyers 135 times, and retail investors 136 times.

Post issue, out of the total 34 per cent public holding, retail shareholders hold 20.83 per cent stake in Motisons, while foreign portfolio investors hold 7.43 per cent stake in the company, shareholding pattern data shows.

Motisons' jewellery business includes the sale of jewellery made of gold, diamond, kundan, and sale of other jewellery products that include pearl, silver, platinum, precious, semi-precious stones, and other metals. Additionally, the company also sells gold and silver coins, utensils, and other artifacts.

Motisons offers 300,000 designs in gold, diamond, and other jewellery across different price points. The growth in Indian jewellery market has been driven by rising middle class population, and a sharp increase in disposable income amongst youth.

The company aims to continue expanding its retail network in a cost efficient manner by leveraging the 'Motisons' brand. The company intends to focus on expanding its product and brand portfolio to address existing gaps and broaden its consumer reach. The company's plans are in place for the company to leverage technology to enhance its operations, emphasising the development of online channels.

"Motisons has grown its revenue/Ebitda/pat at a CAGR of 31 per cent/26 per cent/51 per cent, respectively over FY21-23. The company has a healthy operating margin v/s peers albeit is weak in parameters like Inventory days, Working capital days, and leverage ratios. Motisons has underperformanced the industry average. Additionally, partial repayment of debt is a key positive for the company," Indsec Securities and Finance said in its IPO note.