Shares of Motisons Jewellers hit a new high of Rs 287.85 on the BSE on Wednesday, surging 12 per cent in the intraday trade, ahead of the board meeting on Thursday to consider stock split.
At 02:50 PM, the stock was trading 9.6 per cent higher at Rs 281.75, as compared to 0.23 per cent decline in the BSE Sensex.
Motisons Jewellers, on Monday, said in an exchange filing that the meeting of the board of directors of the company will be held on Thursday, September 19, 2024, to consider the proposal for sub-division/split of equity shares of the company presently having a face value of Rs 10 each in such a manner as the board may determine.
The companies split face values of their equity shares to enhance liquidity of the equity shares and to encourage participation of small investors by making equity shares of the company more attractive to invest.
Since August 7, the stock price of Motisons has zoomed 101 per cent from a level of Rs 141.85. A sharp surge in the market price of the company 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 preferential basis. The board proposed to raise Rs 170 crore through issue of warrants to foreign portfolio investors (FPI)/foreign institutional investors (FIIs). The company said it is raising funds for the company’s long-term business growth plans and in order to widen the business horizons and to augment the long-term financial resources of the company.
Meanwhile, Motisons, in its FY24 annual report, said that the jewellery market is expected to grow steadily and positively from 2024 to 2030 due to rising consumer demand, technological advancements, and changing consumer preferences.
The global jewellery market is projected to reach $310.90 billion in 2024 and grow at a compound annual growth rate (CAGR) of 3.53 per cent from 2024 to 2028. India is the world’s top revenue generator in the jewelry market, and its market is expected to reach $81.26 billion in 2024 and grow at a CAGR of 4.59 per cent from 2024 to 2028.
The government initiatives such as mandatory hallmarking of gold, gold monetisation scheme, and reduced import duty on gold and silver, growing middle class population, increasing women workforce, branded jewelry and surge in demand for traditional gold and gemstone designs are some factors that may contribute to the growth of the Indian jewelry industry, the company said.
First Published: Sep 18 2024 | 2:54 PM IST
