Leading jeweller PN Gadgil Jewellers Ltd has filed its preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise almost ₹1,100 crore through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP) filed by the company, the IPO comprises a fresh issue of equity shares of face value of ₹10 each aggregating up to ₹850 crore and an offer for sale of equity shares of face value of ₹10 each aggregating up to ₹250 crore.
The total offer size comprises of equity shares of face value of ₹10 each aggregating up to ₹1,100 crore. The offer for sale comprises of equity shares of face value of Rs10 each aggregating up to ₹250 crore by SVG Business Trust, the promoter selling shareholder.
Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and BOB Capital Markets Limited are the book running lead managers to the issue.
The funds raised through the issue are proposed to be utilized for the funding of expenditure towards setting-up of 12 new stores in Maharashtra, repayment or pre-payment, in full or part, of certain borrowings availed by the company, and general corporate purposes.
PN Gadgil Jewellers Limited is the second-largest among the prominent organised jewellery players in Maharashtra, in terms of the number of stores as on January, 2024, which is the largest market for BIS-registered outlets in India.
The company is also the fastest growing jewellery brand amongst the key organised jewellery players in India, based on the revenue growth between FY21 and FY23. The company achieved an EBITDA growth of 56.50 per cent between FY21 and FY23 as well as the highest revenue per square feet in FY23, which the highest among the key organised jewellery players in India.
As on December 31, 2023, the company expanded to 33 stores, which includes 32 stores across 18 cities in Maharashtra and Goa and one store in the US. The company had also launched a mobile app ‘PNG Jewellers’, in March 2022. The digital presence allows them to keep customers updated on new designs and collections and familiarise them with the product portfolio. The company has currently engaged Madhuri Dixit, as the brand ambassador to promote the brand.
