Jaipur-based retail jewellery company Motisons Jewellers has filed preliminary paperwork with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The offer consists of only a new issue of 3.34 crore shares and does not include an offer to sell (OFS) component.

The company filed preliminary IPO documents with SEBI in September 2023. However, the capital markets watchdog returned the draft document in December.

The company may consider placing as many as 60 lakh shares ahead of the IPO. If the company raises funds through pre-sale placement, the scale of new issuance will be reduced accordingly.

Apart from general corporate purposes, the jewellery maker will use the new issue’s proceeds to repay debt (Rs 58 crore) and meet working capital needs (Rs 71 crore).

With over two decades in the jewellery industry, Motisons Jewellers is managed by second-generation entrepreneur Sandeep Chhabra, Chairman and full-time Director and Managing Director Sanjay Chhabra. It has a network of four showrooms under the ‘Motisons’ brand based in Jaipur.

The company posted a profit of Rs 14.7 crore in FY22, up 52.5% from the previous year. Operating income for the same period jumped 47.5% to Rs 314.3 crore, mainly due to higher jewellery sales.

Its profit stood at Rs 10 crore on revenue of Rs 162 crore for the six months ending September FY23.

Holani Consultants is the sole business banker for the issue, and Link Intime India is the registrar for the offer.