Mumbai: Moksh Ornaments Limited (BSE: 535041; NSE: MOKSH), Mumbai-based gold ornament manufacturer today announced that it will Rs 48.99 crore by way of a rights issue. The issue will open on December 30, 2024 and close on January 10, 2025. The company plans to issue a total of 3,26,62,642 shares at Rs 15 per share. The shares will be offered on a rights basis to eligible equity shareholders in the ratio of 14:23 (i.e. 14 equity shares for every 23 shares held) as on the record date with the right to renounce. Kunvarji Finstock Private Limited Is the Lead Manger to the Issue and Bigshare Services Private Limited Is the Registrar to the issue
Moksh Ornaments manufactures and export of gold jewellery primarily to B2B consumers. In light with changing products trends the company is reworking on its product and marketing strategy. To begin, the company plans to introduce rose gold ornaments with lighter carat to cater to new generation customers and changing consumer preferences. Apart from changing its product change, it is also in the process of tapping new international geographies
Amrit J Shah, Managing Director at Moksh Ornaments, says, “We have chalked a clear strategy to innovate our products in line with changing market trend. Currently, we have been specialising on gold chains and bangles. But we are now expanding our product range 12-15 products to include rose-gold chains bangles and new lighter carat product to meet the demand from next generation customers.”
The company already has a strong network in domestic market working with major retail chains, is now looking to add new customers in the international market. It is also strengthening its footprints in the global market and it plans float a subsidiary in the UAE. It is in the process acquiring a unit space at SPEEZ in Mumbai to manufacture products of the international market.”
“We have been exporting to UAE and Dubai in particular for the last 8-10 years and have been able to establish a very strong presence in that market. We have a number of B2B customers there to whom we have been supplying from India. Now we are looking to expand our international reach and add other cities in the UAE as well as tap into the growing demand from European countries and other GCC markets,” he said.
Once the Dubai office becomes operational, it will become easier for the company to cater to these new markets. “It is slightly difficult to cater to these markets from India but it will become easier once we have our office in Dubai because clients can come for regular visits,” he pointed out.
According to Mr Amrit Shah, Managing Director, Moksh Ornaments Limited, the company has been witnessing a steady growth in demand for gold jewellery from its customers both in domestic and international markets.
“We have been consistently strengthening our product portfolio by blending in modern ideas into traditional jewellery with a view to meet the demands of our customers across various markets. This has helped boost our sales not just in the domestic but also in the international markets. We are now looking to ramp up our product portfolio and expand our customer base both in India and overseas by venturing into newer markets thereby strengthening our customer base.
The funds raised through the rights issue will help meet our working capital requirements and some part of the proceeds will also be utilised for general corporate purposes,” Shah said.
For the quarter ended September 30, 2024, the company registered 25.17 per cent growth in revenue from operations at Rs 158.45 crore, as compared with Rs 126.58 crore same period last year. Net profit during the quarter increased by 33.15 per cent at Rs 2.41 crore as against Rs 1.81 crore during the quarter ended September 30, 2023. For the year ended March 31, 2024, the company had reported a net profit of Rs 6.25 crore and revenue from operations of Rs 449.20 crore.
DISCLAIMER: “Moksh Ornaments Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to undertake a rights issue of its equity shares (“Issue”) and has filed a letter of offer (“LOF”) with Securities and Exchange Board of India (“SEBI”), BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). The LOF is available on the website of the SEBI, BSE, NSE and the Registrar to the Issue at www.sebi.gov.in, www.bseindia.com, www.nseindia.com and BigShare Services Limited respectively, as well as on the websites of the lead managers to the Issue, Kunvarji Finstock Private Limited.
Potential investors should note that investment in equity shares involves a high degree of risk. For details of such risks, potential investors should refer to the "Risk Factors" section of the LOF, prior to making any investment decision with respect to the Issue.”
The Rights Entitlements and the Equity Shares have not been and will not be registered under the United StatesSecurities Act of 1933, as amended (“US Securities Act”), or any U.S. state securities laws and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and applicable state securities laws. The Rights Entitlements and the Equity Shares are being offered and sold (i) in offshore transactions outside the United States in compliance with Regulation S under the US Securities Act and the applicable laws of the jurisdiction where those offers and sales occur; and (ii) in the United States to “qualified institutional buyers” (as defined in Rule 144A under the US Securities Act)pursuant to the private placement exemption set out in Section 4(a)(2) of the US Securities Act.