Prior to the IPO, Motisons Jewellers secured Rs 36.3 crore from 2 anchor investors.
In a remarkable show of investor enthusiasm, Motisons Jewellers witnessed a robust response to its Rs 151.09-crore new initial public offering (IPO) on the first day of bidding, December 18. The subscription frenzy saw the issue being oversubscribed 10.56 times, with a total of 22.03 crore shares bid against the initial offering size of 2.08 crore shares.
Investor Categories Leading the Charge
Retail investors emerged as the driving force behind the surge, displaying an overwhelming response by subscribing 16.51 times. High net-worth individuals (HNIs) were not far behind, securing 8.04 times the shares on offer, while qualified institutional buyers (QIBs) secured 3 percent of the allocated quota.
Fresh Issue and Anchor Investor Boost
Motisons Jewellers’ IPO comprises an entirely fresh issue of 2.74 crore shares. In anticipation of the IPO launch, the company strategically secured Rs 36.3 crore from two anchor investors on December 15. Notable investments came from Meru Investment Fund PCC-Cell 1, acquiring 46 lakh equity shares valued at Rs 25.3 crore, and Zinnia Global Fund PCC-Cell Dewcap Fund, purchasing 20 lakh shares worth Rs 11 crore.
Utilization of Proceeds
The net proceeds from the fresh issue are earmarked for specific purposes, with Rs 58 crore allocated to debt repayment and Rs 71 crore earmarked for fulfilling working capital requirements. The remaining funds will be directed towards general corporate purposes.
Closing Bell on December 20
Investors keen to join the Motisons Jewellers IPO wave have until December 20 to subscribe. The company has set a price band of Rs 52-55 per share, offering potential investors an opportunity to partake in the promising venture.
As the subscription period progresses, market observers are closely watching the IPO’s trajectory, anticipating its impact on Motisons Jewellers’ market presence and the broader jewelry industry. The resounding response from retail investors signals a strong vote of confidence in the company’s prospects, underscoring the significance of Motisons Jewellers in the ever-evolving landscape of the Indian capital market.