Jaipur-based jewellery retailer, Motisons Jewellers, has decided to split its shares after a board meeting on Thursday, September 19.
The company will split one share with a face value of ₹10 into 10 shares, each with a face value of ₹1. This marks the company’s first corporate action of this nature.
A stock split is typically done to increase the number of outstanding shares and improve trading liquidity, making shares more affordable to investors.
The record date for the stock split is set for Saturday, November 9, 2024. On this date, the company will determine which shareholders are eligible to benefit from this corporate action.
Company’s Background and Financial Performance
Motisons Jewellers began its jewellery business in 1997 with a single showroom in Jaipur and has since grown to four showrooms under the Motisons brand.
The company offers over 300,000 jewellery designs, ranging from gold and diamond items to other types of jewellery across various price ranges.
Financially, the company has seen strong growth in recent years. In the fiscal year ending March FY23, Motisons’ net profit surged by 50.5% to ₹22 crore, while revenue grew by 16.5% to ₹366 crore compared to the previous year.
In the first quarter of FY24, the company posted a profit of ₹5.5 crore and revenue of ₹86.7 crore.
On Thursday, shares of Motisons Jewellers Ltd. were trading 1.58% lower at ₹274.82, though the stock has risen nearly 5 times from its initial public offering (IPO) price of ₹55 per share.
