Multibagger Consumer Durable Stock Approves Rs 170 Cr Fundraising & Increase In Authorized Share Capital

Motisons Jewellers, a multibagger stock, began trading higher on Wednesday at Rs. 171.45 a share following the announcement of a Rs. 170 Cr fundraising deal via preferential issue at an issue price of Rs. 170 and an increase in authorised share capital.

"In terms of the company's long-term business growth plans and in order to widen the business horizons and to augment the long-term financial resources of the Company through raising of funds, by way of creating, issuing and allotting up to 1,00,00,000 (One Crore only) Fully Convertible Warrants convertible into equivalent number of fully paid up equity shares of the Company having face value of Rs. 10/- (Rupees Ten Only), to the persons belonging to "NonPromoter, Public Category", said Motisons Jewellers in a stock exchange filing.

The fundraising deal is payable in cash for aggregating amount of up to Rs. 170 Cr.

The Board of Directors also considered and approved, "To increase the Authorized Share Capital of the Company from existing Rs. 113,00,00,000/- (Rupees One Hundred and Thirteen Crores Only) comprising of Rs. 103,00,00,000/- Equity share capital divided into 10,30,00,000 (Ten Crores Thirty Lakhs Only) Equity Shares of Rs. 10/- each and Rs. 10,00,00,000 (Rupees Ten crores only) Preference Share Capital divided into 1,00,00,000 (One Crore Only) Preference Shares of Rs.10/- each to Rs.125,00,00,000 (Rupees One Hundred and Twenty Five Crores Only) comprising of Rs. 115,00,00,000/- (Rupees One Hundred and Fifteen Crores only) Equity share capital divided into 11,50,00,000 (Eleven Crores and Fifty Lakh only) Equity Shares of Rs. 10/- each and Rs. 10,00,00,000 (Rupees Ten crores only) Preference Share Capital divided into 1,00,00,000 (One Crore Only) Preference Shares of Rs.10/- each," said Motisons Jewellers in a regulatory filing on August 14, 2024.

Motisons Jewellers' net profit jumped 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. In the quarter that ended in June 2024, sales increased by 2.28% to Rs 88.71 crore, compared to Rs 86.73 crore in the quarter that ended in June 2023.

In addition to other jewellery products, Motisons Jewellers Ltd. sells jewellery made of gold, diamonds, and kundan. The market value of the firm is Rs 1,665.21 Cr.