Jewellery Stock To Consider Fundraising & Increase In Authorized Share Capital; Do You Own?

Motisons Jewellers Ltd a small-cap company in the consumer discretionary sector has revealed plans for its business growth as the Board of Directors will meet soon to consider the proposal for raising funds to augment the financial resources of the company.

Motisons Jewellers informed stock exchanges that "In terms of Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ('Listing Regulations') as amended from time to time, we hereby inform you that the meeting of the Board of Directors of Motisons Jewellers Limited ("the Company") is scheduled to be held on Wednesday, August 14, 2024, inter-alia to transact following businesses: i. To consider the proposal for raising of funds to augment the financial resources of the Company, by issuance of equity shares, convertible instruments, any other securities by any of the permissible means, in one or more tranches as may be decided by the Board, subject to such regulatory / statutory approvals as may be required including the approval of shareholders of the Company.; ii. To consider increase in the Authorized Share Capital of the Company and consequent amendments in Capital Clause of the Memorandum of Association. iii. To appoint necessary intermediaries, if any, for this purpose and all other matters incidental thereto and connected therewith."

"Pursuant to the provisions of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 and Company's Code of Conduct for Prevention of Insider Trading, we wish to inform you that trading window for dealing in securities of the Company by all the Designated Persons and their immediate relatives, will be closed from Saturday, August 10, 2024 till the end of 48 hours of the conclusion of the Board Meeting i.e. Friday, August 16, 2024," Motisons Jewellers further said in a stock exchange filing.

According to the financials, Motisons Jewellers' net profit increased by 15.51% to Rs 6.33 crore in the quarter that ended in June 2024 from Rs 5.48 crore in the quarter that ended in June 2023. Sales in Q1FY25 increased by 2.28% to Rs 88.71 crore from Rs 86.73 crore in Q1FY24.

Motisons Jewellers Limited's Initial Public Offering (IPO) was introduced in December 2023. This book-build offering of the IPO, which was priced between Rs 52 and Rs 55 per equity share, brought in an impressive Rs 151.09 crore through the public issue. After the IPO was announced at Rs 52 to Rs 55 price band, Motisons Jewellers' shares were listed on the BSE and NSE on December 26, 2023, at a premium of more than 100%. As of right now, the share price is about Rs 172, meaning that shareholders have benefited by a substantial 200 percent or more compared to the issue price of Rs 52 to Rs 55 per equity share.