Motisons Jewellers Ltd has announced plans to raise funds of up to ₹170 crore through a preferential issue of shares as part of its long-term business growth plans. This move aims to enhance the company’s financial resources and broaden its business horizons.

The company’s board of directors, at a meeting on August 14, approved raising funds worth up to ₹170 crore by creating, issuing and allotting fully convertible warrants.

The Jaipur-based jewellery retailer will do this with up to 1 crore fully convertible warrants, which will be convertible into equivalent numbers of fully paid-up equity shares, having a face value of ₹10 each, to those falling under the ‘NonPromoter, Public Category’.

The convertible securities will be issued on a preferential basis at an issue price of ₹170 per piece. This will be payable in cash for a sum aggregating to nearly ₹170 crore.

The company’s board has set the tenure of the warrants to not exceed a period of 18 months from the date of allotment.

Each warrant will carry a right to subscribe one equity share per warrant, which may be exercised in one or multiple tranches within 18 months from the date of allotment of such warrants, the jewellery retailer stated in a filing to the stock exchanges.

The board has also approved to increase the company’s authorized share capital to ₹125 crore from the existing ₹113 crore.

Shares of Motisons Jewellers gained 1% on the BSE in Wednesday’s session, recording the day’s high at ₹171 per piece.

At around 3 pm, the stock traded 0.38% lower at ₹168.85 apiece on BSE.

Motisons Jewellers started its jewellery business in 1997 with a single showroom in Jaipur and later expanded its network to four showrooms under the Motisons brand.

The product portfolio comprises over 300,000 jewellery designs, including a wide range of gold, diamond and other jewellery items across different price points.