Motisons Jewellers IPO: ‘Retail investors would apply in it big time ignoring…,’ some raise caution
Motisons Jewellers IPO that had opened for Subscription on Monday has seen a very strong response with with the Issue being subscribed fully within minutes of opening. Motisons Jewellers IPO was subscribed more than 15 times on the day 1 led by both retail and non-institutional investors (NIIs). Motisons Jewellers IPO received bids for 31,34,36,250 shares against 2,08,71,000 shares on offer on Day 1, according to data from the BSE.
With strong subscription being led by interest from both retail and institutional investors , the Grey Market Premium or GMP also jumped. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price”. It also indicates the listing gain expectations of the investors.
Mr. Sandeep Chhabra, Sanjay Chhabra, Namita Chhabra, and Kajal Chhabra are among the promoters for the Motisons Jewellers IPO.
The risk factors highlighted by the Motisons Jewellers in the Red – Herring Prospectus however have raised eyebrows.
The promoters Sanjay Chhabra and Sandeep Chhabra, in past, were involved in proceedings initiated by investigation agency in relation to betting in the cricket matches of Indian Premier League. Though they have been duly discharged, any re – opening of matter could have an adverse impact on our business and reputation.
Further, Motisons Jewellers in the RHP also highlights that –
Certain of its Promoters and member of our Promoter Group are involved in proceedings involving SEBI which could have an adverse impact on our business and reputation.
Also in another pointer it highlights that in past, some of its Promoters (Sanjay Chhabra and Sandeep Chhabra) and its Promoter Group Companies have contravened the provisions of the SEBI Act and Regulations made there under for which penalties in nature of fine and/or debarment from accessing capital market have been imposed by SEBI. In certain matters, our Promoter has been acquitted also. If any such violation occurs in future, it may affect the company’s goodwill and future aspect.
Sahil Bhadviya (twitter handle @sahilbhadviya ) Founder@Sahil’s Academy, YouTube Educator, Ex-Data Analytics Consultant from Udaipur, India in his tweet said that “ Now for me promoter profile is the holy grail in the co and any such cases (even the allegations) are enough to outright reject the company. I’ll not invest even a single penny. But this co is commanding a GMP of 200%. I’m sure retail investors would apply in it big time ignoring all the above points. That’s a clear sign that we are in IPO bubble! It can bust anytime”
“Moreover, I’m certain that post listing this co would see many lower circuits” added Bhadviya.
IPO details
Motisons Jewellers IPO comprises a fresh issue of shares of up to 2,74,71,000 equity shares of face value of ₹10 each, as per Red Herring Prospectus (RHP). Motisons Jewellers IPO is a book built issue of ₹151.09 crores. The company intends to use the net proceeds of the fresh offering to finance the following goals: meeting the company’s working capital needs; general corporate purposes; and repaying the company’s outstanding loans from scheduled commercial banks.
GMP or current Grey Market Premium
Motisons Jewellers IPO grey market premium stands at +109 on day 2 of subscription. This has risen from +106 prior to opening of the IPO. The current GMP indicates Motisons Jewellers share price were trading at a premium of ₹109 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Motisons Jewellers share price was indicated at ₹164 apiece, which is 198.18% higher than the IPO price of ₹55.
The investors thereby are expecting huge listing gains of 198.18%, which is a phenomenal return .
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 19 Dec 2023, 11:32 AM IST
