Corporate Action Alert! Stock Split Leads To 54,00,000 New Shares; Are You Holding This Jewellery Stock?
Business
The results of the Board of Directors’ Fund-Raising Committee meeting on February 26, 2026, which authorized the conversion of warrants into equity shares under a preferential allotment arrangement, have been communicated to the stock exchanges by Motisons Jewellers Limited.
The allotment of 54,00,000 equity shares with a face value of Re. 1 each at an issue price of Rs. 17 per share, including a premium of Rs. 16 per share, was taken into consideration and authorized by the committee. This allotment was made in response to the partial conversion of 5,40,000 of the 26,00,000 outstanding warrants that the company had previously issued.
These warrants were originally issued at a price of Rs. 170 per warrant on a preferential basis to Nexpact Limited, categorized under the Non-Promoter Public Category. At the time of allotment, investors had paid 25% of the warrant issue price, amounting to Rs. 42.50 per warrant, while the remaining 75%, equivalent to Rs. 127.50 per warrant, was payable at the time of conversion into equity shares within a period of 18 months from the date of allotment.
Upon exercising conversion rights, Nexpact Limited paid the balance consideration aggregating to Rs. 6.885 crore, leading to the allotment of equity shares. The number of shares allotted reflects adjustments made after the company carried out a subdivision (stock split) of its equity shares, wherein the nominal value was split from one equity share of Rs. 10 each into ten equity shares of Rs. 1 each. Consequently, each warrant holder became eligible to receive ten equity shares for every warrant converted post the stock split, resulting in the allotment of 54,00,000 equity shares against 5,40,000 warrants.
Following this allotment, the issued and paid-up equity share capital of Motisons Jewellers Limited has increased to Rs. 1,00,17,60,000, comprising 1,00,17,60,000 equity shares of Re. 1 each. The newly issued equity shares will rank pari-passu with the existing equity shares of the company in all respects.
About 0.99% of the company’s post-issue equity share capital was held by Nexpact Limited, whose equity ownership grew from 45,00,000 shares before the allotment to 99,00,000 shares following the conversion. One investor in the non-promoter public category participated in the offering, which was completed using a preferential allotment method.
Additionally, the company highlighted that there are still 82,70,000 outstanding warrants that could potentially be converted into equity shares. Within the allotted 18 months from the initial date of allotment, these warrant holders are still able to convert their warrants by paying the remaining 75% of the issue price. The warrants will expire and the corporation will forfeit the money paid at the time of subscribing if they are not exercised within this time frame.
Motisons Jewellers Ltd. (MOTISONS) shares are valued at Rs 15.60 on the NSE as of the market close on February 27, 2026. The market cap of the firm was around Rs 1,554.32 Cr. From its previous close of Rs 15.96, the stock wrapped up down 2.26%. The stock price spanned a low of Rs 15.05 to a high of Rs 15.99 during the session. Over the last year, the stock has fluctuated between a high of Rs 24.02 and a low of Rs 10.62. On November 9, 2024, a 1:10 stock split was carried out, lowering the face value from Rs 10 to Rs 1.