Multibagger gems & jewellery stock surged over 13 per cent with heavy volume; Recently, Board raised Rs 170 crore from FIIs!
The stock gave multibagger returns of 147.53 per cent from its 52-week low of Rs 87.10 per share.
Today, one of the Top Gainers on BSE, shares of Motisons Jewellers Ltd surged 13.62 per cent to Rs 215.60 per share from its intraday low of Rs 189.95 per share with 2 times spurt in volume.
Motisons Jewellers Ltd. recently announced that its Board of Directors approved two significant decisions. Firstly, they authorized the issuance of up to Rs 170 crore worth of fully convertible warrants to non-promoter, public category investors. These warrants can be converted into equity shares at a higher price than the SEBI-determined floor price. The funds raised will be used to support the company's growth plans. Secondly, the Board approved an increase in the authorized share capital to accommodate the new equity shares. The warrants will be allotted to three investors, including North Star Opportunities Fund, Eminence Global Fund, and Nexpact Limited. The warrants have a tenure of 18 months and can be converted into equity shares within that period. If not exercised, the warrants will lapse, and the invested amount will be forfeited. The post-allotment shareholding will see a decrease in the promoter group's shareholding and an increase in public shareholding. The issue price for the warrants is Rs 170, and the payment will be in cash.
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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.
The company has a market cap of over Rs 2,000 crore and has delivered good profit growth of 56.2 per cent CAGR over the last 5 years. The stock gave multibagger returns of 147.53 per cent from its 52-week low of Rs 87.10 per share. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.