Motisons Jewellers Ltd IPO – Get Date, Price, Review and Details

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About the company:

Motisons Jewellers Ltd. was incorporated in October 1997, and is currently engaged in the business of selling jewellery made of gold, diamonds, and Kundan as well as other jewellery products such as pearls, silver, platinum and other precious and semi-precious metals. The company offers a wide range of products including traditional, modern and combination designs in various jewellery lines. These products are suitable for special occasions such as weddings and celebrations and everyday use, for all ages and genders and in different price ranges. The company offers various jewellery products with over 3,00,000 designs in gold, diamonds and other materials at various prices. Over the years, it has introduced a range of jewellery collections designed to cater to specific customer niches such as classic jewellery, contemporary jewellery, polki diamonds and precious stones jewellery. Each collection serves customers with different needs and preferences for different designs. One of the edge that the company holds is that its showrooms are strategically located in key demand segments and the product portfolio is diversified across price points and categories. It has established systems and procedures for various facets of business and operations including inventory management, CRM, business data analytics, security and surveillance systems, quality control, and procurement of raw materials.

The objective of the fresh issue:

The company intends to utilize the net proceeds of the fresh issue towards:

• Repayment of existing borrowings availed by the company from scheduled commercial banks.
• Funding the working capital requirements of the company.
• General corporate purposes.

Key Strengths and Opportunities:

• Motisons Jewellers boasts a 25-year legacy, complemented by robust risk management systems and processes, enhancing its overall business model. The company's core strength resides in its extensive range of designs crafted by talented jewellery designers. These creations, including speciality designs, are tailored to align with the latest trends and customer preferences. With a diverse product portfolio, Motisons Jewellers offers over 300,000 jewellery designs spanning various categories.
• The company has strategically aligned its sourcing, manufacturing, and retail sales operations, leveraging this integration to gain multiple competitive advantages. This approach has allowed it to dynamically adapt its product range to meet evolving customer preferences, maintain just-in-time inventory availability, and respond promptly to changes in demand. One of its key strengths lies in the meticulous craftsmanship of in-house manufacturers.
• The company's strategic plan involves enhancing its product and brand offerings to address gaps in the existing portfolio and broaden its customer base. To accomplish this objective, the company plans to utilize technology to expand its operations and prioritize online channels.
• The company has demonstrated strong growth in both revenue and profit after tax (PAT) over the past three periods. The focus on the organization of the jewellery market in India surely appears to be helping the company.

Risks

• Motisons procures over 95% of the goods it sells from external suppliers, highlighting heavy dependence on third-party entities for product provisioning. Any interruptions in the operations of these third-party production or manufacturing facilities, along with their supply chain arrangements may have a negative effect on the company’s reputation, business and financial condition.
• The company operates four showrooms, all located in Jaipur, Rajasthan. Due to the concentrated nature of the business in this particular area, it is susceptible to regional conditions and economic downturns. Any negative developments impacting this specific geographic region could potentially have adverse effects on various aspects of its business, including overall prospects, financial condition, and operational results.
• Motisons Jewellers operates in highly competitive markets, with competitors ranging from established nationwide jewellers to local, unorganized players across different regions. Key factors contributing to this competitiveness encompass brand reputation, product style, range and quality, effective display, transparent pricing, personalized customer service, strategic store locations, designs tailored to local preferences, and impactful advertising and promotion. The inability to effectively compete on these fronts against current or emerging rivals poses a risk to the company's future growth prospects.
• Customer complaints, negative publicity, or concerns related to the purity and quality of our gold/jewellery, making charges, hall markings, or any issues with our quality control processes could potentially impact our business, brand, and financial condition adversely.

Financial Snapshot