Stock Under Rs 20: Jewellery Company Allots 54,00,000 Equity Shares to Mauritius-based FII

The Fundraising Committee of the Board of Directors of Motisons Jewellers Ltd approved the allotment of 54,00,000 equity shares (face value Re 1) to Nexpact Limited on February 26, 2026. This allotment follows the conversion of 540,000 warrants originally issued at Rs. 170/- each on a preferential basis. The conversion was finalised upon receipt of the remaining 75% balance, totalling Rs 6.89 crores. Notably, the share count was adjusted to reflect a prior stock split, where the nominal value of shares transitioned from Rs 10 to Re 1 each, resulting in 10 equity shares being issued for every warrant held.

Following this transaction, the company’s total issued and paid-up capital has increased to Rs 100.18 crore, comprising 1,00,01,76,000 equity shares. These new shares rank pari-passu with existing equity. Currently, 82,70,000 warrants remain outstanding for conversion. Nexpact Limited, classified under the "Non-Promoter, Public Category," saw its post-issue holding increase from 0.45 per cent to 0.99 per cent. All remaining warrant holders must exercise their conversion rights within 18 months of their original allotment date to avoid forfeiture of the initial 25 per cent deposit.

About the Company

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.

According to Quarterly Results, the net sales increased by 20 per cent to Rs 174.56 crore and net profit increased by 70 per cent to Rs 25.94 crore in Q3FY26 compared to Q3FY25. In its nine-month results, the net sales increased by 3 per cent to Rs 352.08 crore and net profit increased by 73 per cent to Rs 55.40 crore in 9MFY26 compared to 9MFY25. Looking at the annual results, the net sales increased by 10.9 per cent to Rs 462.11 crore and net profit increased by 34 per cent to Rs 43.17 crore in FY25 compared to FY24. The company reduced the debt to 72.4 crore in FY25 compared to FY24.

The company has a market cap of over Rs 1,500 crore and has delivered good profit growth of 69 per cent CAGR over the last 5 years. The stock is up over 50 per cent from its 52-week low of Rs 10.63 per share.

Disclaimer: The article is for informational purposes only and not investment advice.