Motisons Jewellers QIP: shares witnessed strong buying interest on Wednesday, June 10, after the company launched its Qualified Institutions Placement (QIP) issue on June 9 and fixed a floor price of ₹11.58 per equity share for the offering.
The stock surged as much as 6.5% during intra-day trade to hit a high of ₹12.79. However, it pared some gains and settled 2% higher at ₹12.25 on the BSE.
Despite the positive reaction in Wednesday’s session, the stock has remained under pressure over the past few months. Motisons Jewellers shares have declined 8% in the last one month, 14% over the past three months, 23% in the last six months and 36% on a one-year basis.
Board approves QIP launch
The company’s board of directors, at its meeting held on June 9, approved the opening of the issue and adopted the preliminary placement document along with the application form that will be circulated among Qualified Institutional Buyers (QIBs).
Through the QIP process, the company will invite bids and receive subscription applications from eligible institutional investors. The capital-raising exercise is being undertaken in accordance with applicable regulatory provisions governing institutional placements.
The company has fixed a floor price of ₹11.58 per equity share for the issue. It also stated that it may, at its discretion, offer a discount of up to 5% on the floor price determined under the regulations. The final issue price will be decided based on applicable regulatory requirements and investor demand during the placement process.
In a separate disclosure, the company said the trading window for dealing in its securities will remain closed for all designated persons from June 9, 2026, until 48 hours after the determination of the issue price. The move is in line with insider trading regulations and the company’s code governing trading by designated persons.
The launch of the QIP marks an important step in the company’s fundraising plans and comes at a time when it seeks to attract institutional investor participation through the capital markets.
What is a QIP?
A Qualified Institutions Placement (QIP) is a method through which a listed company raises capital by issuing shares or other securities to Qualified Institutional Buyers (QIBs), such as mutual funds, insurance companies, banks and foreign institutional investors. Introduced by the Securities and Exchange Board of India (), the mechanism enables companies to raise funds quickly without going through lengthy public issue procedures. QIPs are commonly used by listed companies to strengthen their balance sheets, fund expansion plans, reduce debt or meet other corporate requirements.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.