Shares of Motisons Jewellers have provided approximately a 200% return to IPO investors over a two-year period, aided by a 1:10 stock split. The company initiated its public offering in December 2023 at a price range of ₹52– ₹55 per share, with a lot size set at 250 shares, which meant an investor would need to invest ₹13,750 at the upper end of the price band.
After the 1:10 stock split, the number of shares held by the investor increased from 250 to 2,500 shares. With the stock now trading at around ₹15.80 per share following the split, the overall value of the investment amounts to roughly ₹39,500 ( ₹15.80 × 2,500).
This represents nearly a threefold increase from the initial investment, underscoring substantial profits for those who retained the stock since its listing.
The fund-raising committee of the board convened on February 26, 2026, and approved the conversion of 5,40,000 warrants into 54,00,000 equity shares, each with a face value of Re 1. The shares were issued at an effective price of ₹17 per share, which includes a premium of ₹16, after the sub-division of the equity shares from ₹10 to Re 1.
These warrants were initially issued on a preferential basis to Nexapct Limited, categorized as a non-promoter public entity, at ₹170 per warrant. Upon conversion, the company received the remaining 75% of the issue price— ₹127.50 per warrant—totaling ₹6.89 crore, while ₹42.50 per warrant (25%) had been paid during the allotment on October 5, 2024, in compliance with SEBI ICDR regulations.
As of November 8, 2024, after the stock split, each warrant can now be converted into 10 equity shares with a face value of Re 1 each. The newly issued shares will have the same rights as the existing shares. After the allotment, the company’s paid-up equity capital amounts to ₹100.18 crore, which consists of 1,00,17,60,000 equity shares.
Currently, there are 82,70,000 outstanding warrants that can be converted within 18 months from the original allotment date; if not converted, they will expire and the amount paid will be forfeited.
(more to come)