The initial public offering of Jaipur-based jewellery retailer Motisons Jewellers has been a blockbuster success so far. The issue, which will close today, was subscribed 51.50 times, mainly thanks to HNI and retail investors.

Subscription details

The portion set aside for retail investors was subscribed a whopping 64.60 times, while the non-institutional quota saw a subscription of 69.68 times. QIBs remain muted at 0.06 times.

Against 2.08 crore shares on offer, the IPO received bids for 107.48 crore shares.

About issue

The company hit the primary market to raise ₹151 crore at a price band of ₹52-55, with a market lot of 250 shares.

The entire issue from the Chhabra family-owned jewellery maker consists of only a fresh issue of 2.74 crore shares.

About 50 per cent of the offer is reserved for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

Anchor investors

On Friday, as part of the IPO, the company mobilised ₹36.3 crore from two anchor investors - Meru Investment Fund PCC-Cell 1 bought 46 lakh equity shares and Zinnia Global Fund PCC-Cell Dewcap Fund purchased 20 lakh shares.

Of the net fresh issue proceeds, ₹58 crore will be utilised for debt repayment, ₹71 crore for working capital requirements, and the remaining amount will be set aside for general corporate purposes going forward.

It may be recalled that Motisons had earlier secured ₹33 crore through a pre-IPO placement at the same valuation, preceding the submission of a red herring prospectus to the Registrar of Companies (ROC).

Related Topics
comment COMMENT NOW