Stock doubled in just 8 months: Multibagger gems & jewellery stock rockets over 8 per cent with heavy volume; Board raised Rs 170 crore from FIIs for long-term growth plans!
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 87.10 per share which was 8 months ago in December 2023.
Today, one of the Top Gainers on BSE, shares of Motisons Jewellers Ltd rocketed over 8 per cent to Rs 183.65 per share from its previous closing of Rs 168.65 per share with heavy volume.
Motisons Jewellers Ltd, established in 1997, is a prominent Indian jeweller offering an extensive collection of gold, diamond, kundan, pearl, silver and platinum jewellery, boasting over 300,000 designs spanning traditional, modern, and fusion styles. The company also arranges virtual appointments to assist its customers. Products offered through online marketplaces are diverse and not available in the showrooms. The company intends to raise funds through the IPO is utilised for Repayment of borrowings, Working capital requirements and General corporate purposes.
Motisons Jewellers Ltd announced that its Board of Directors approved two key decisions at their recent meeting. Firstly, they authorized the raising of up to Rs 170 crores through a preferential issue of 1 crore fully convertible warrants to non-promoter, public category investors. These warrants can be converted into 1 crore equity shares at an issue price of Rs. 170 per warrant, which is higher than the SEBI-determined floor price. The funds raised will be utilized to support the company's long-term growth plans. This decision is subject to shareholder and regulatory approvals. Secondly, the Board approved an increase in the authorized share capital from Rs 113 crore to Rs 125 crore, with a corresponding amendment to the Memorandum of Association. This increase is also subject to shareholder approval.
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The preferential issue involves allotting warrants to three investors: North Star Opportunities Fund VCC-Bull Value Incorporated VCC Sub-Fund, Eminence Global Fund PCC- Eubilia Capital Partners Fund I, and Nexpact Limited, all categorized as FPIs/FIIs. Each investor will receive a specific number of warrants as detailed in the notification. The warrants have a tenure of 18 months from the allotment date, and each warrant can be converted into one equity share. If not exercised within 18 months, the warrants will lapse, and the invested amount will be forfeited. The post-allotment shareholding will see the promoter group's shareholding decline from 66 per cent to 59.91%, while the public shareholding will increase from 34 per cent to 40.09 per cent. The issue price for the warrants is Rs 170, and the payment will be in cash.
The company has a market cap of over Rs 1,700 crore and has delivered good profit growth of 56.2 per cent CAGR over the last 5 years. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 87.10 per share which was 8 months ago in December 2023. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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