Motisons up 12% ahead of stock split board meeting; zoom 101% in 31 days

3 minutes reading time Last updated: September 18, 2024 | 2:54 p.m. IST

Shares of Motisons Jewellers hit a new high of Rs 287.85 on the Bombay Stock Exchange on Wednesday, surging 12 per cent in intra-day trade, ahead of the board meeting on Thursday to consider the stock split.

At 2:50 pm, the stock was trading 9.6% higher at Rs 281.75, against a decline of 0.23% on the BSE Sensex.

Motisons Jewellers said in an exchange filing on Monday that the board meeting of the company will be held on Thursday, September 19, 2024, to consider the proposal for sub-division/split of the shares of the company currently having a face value of Rs 10 each in such manner as the board may determine.

Companies split the par value of their common stock to improve the liquidity of the common stock and to encourage participation by small investors by making the company’s common stock more attractive to invest in.

Motisons’ share price has soared 101 per cent since August 7 from the level of Rs 141.85. The sharp rise in the company’s share price came after its board on August 14 approved allotment of 10 million fully convertible warrants at an issue price of Rs 170 per share on a preferential basis. The board has proposed to raise Rs 170 crore through issuance of warrants to foreign portfolio investors (FPIs)/foreign institutional investors (FIIs). The company said it is raising funds for the company’s long-term business growth plans and to expand the company’s business horizons and augment its long-term financial resources.

At the same time, Motisons, in its FY24 annual report, stated that the jewellery market is expected to grow steadily and positively from 2024 to 2030 owing to increasing consumer demand, technological advancements and changing consumer preferences.

The global jewelry market is expected to reach USD 310.90 billion in 2024 and grow at a compound annual growth rate (CAGR) of 3.53% from 2024 to 2028. India is the world’s largest revenue generator in the jewelry market, and its market is expected to reach USD 81.26 billion in 2024 and grow at a CAGR of 4.59% from 2024 to 2028.

Government initiatives like mandatory hallmarking of gold, gold monetisation scheme and reduction in import duty on gold and silver, growing middle class, increasing women workforce, branded jewellery and increasing demand for traditional designs in gold and gemstones are some of the factors that can contribute to the growth of the Indian jewellery industry, the company said.

First published: September 18, 2024 | 2:54 p.m. IST