P N Gadgil Jewellers IPO Day 2: GMP, subscription status, key dates, review, other details. Apply or not?

P N Gadgil Jewellers IPO: Amid a wave of initial public offerings (IPOs), the Maharashtra-based firm PN Gadgil Jewellers Ltd.'s IPO was fully bookedin a matter of hours after it opened for bids on Tuesday and concluded the day with a two-time subscription. On Monday, PN Gadgil Jewellers Ltd said that it had collected ₹330 crore from major investors. On September 12, the IPOwill come to an end. The issue's price band has been set at ₹456-480 per share. The lot size for the issue is 31 equity shares, and it can be increased in multiples of 31 equity shares thereafter.

P N Gadgil Jewellers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

As per the Technopak Report, P N Gadgil Jewellers is the leading market for BIS-registered shops in India and is the second biggest organised jewels retailer in Maharashtra. As of January 2024, it has the maximum number of stores. Based on the rise in sales between fiscal 2022 and fiscal 2024, the firm has also become the jewellery brand with the quickest growth rate among the main organised jewellery retailers in India.

The firm sells its products mostly under the flagship brand "PNG" and a number of sub-brands through a number of channels, including websites and 39 retail locations (as of July 31, 2024).

P N Gadgil Jewellers IPO Subscription Status

During the second day of bidding, P N Gadgil Jewellers IPO maintained its momentum from the first day, with non-institutional investors leading the subscriptions. At 17:03 IST, P N Gadgil Jewellers IPO subscription status was 6.89 times, as per BSE data. 

The initial share sale received bids for 11,62,99,073 shares against 1,68,85,964 shares on offer, according to BSE data.

While the quota for non-institutional investors was subscribed to 15.74 times, the share for retail investors obtained 6.98 times subscriptions. The qualified institutional buyers (QIBs) part is booked 8%.

On the first day of bidding, the IPO for P N Gadgil Jewellers Ltd, was completely subscribed, with non-institutional investors in the lead, and retail investors following closely behind. P N Gadgil Jewellers IPO subscription status is 2.01 times, as per BSE data.

The portion for retail investors received 2.61 times subscription while the quota for non-institutional investors got subscribed 3.27 times. The qualified institutional buyers (QIBs) part is booked 1%.

P N Gadgil Jewellers IPO Review

Anand Rathi Research

The sixth generation of the jeweller family is in charge of Pune-based P N Gadgil Jewellers Ltd, which is the second-biggest jewellery merchant in Maharashtra, according to the brokerage. The business offers loyalty programs and customer-focused rewards like any other traditional player. Due to the growing proportion of organized players, the retail gold jewelry market in India, which is the world's second-largest consumer, is predicted to expand at a 16% CAGR between FY 23 and FY 28. Additionally, the firm intends to use the funds to finance the opening of 12 new stores in Maharashtra by the fiscal year 2026, as part of its aspirations to further expand its network of stores.

According to valuation analysis, the company's indicated market cap at the highest price range is around ₹65,130 million, or 42.2 times the PE for FY24. The brokerage believes that this matter might be taken into consideration for the company's long-term growth, given its consistent and increasing earnings and return ratios. As a result, the brokerage rates this IPO as "SUBSCRIBE" for LONG TERM.

SMIFS Ltd

The firm projects that the retail jewellery industry would expand to US$ 145 billion by FY28. With more than 25,000 registered stores, PNG has established itself as the largest market for BIS-registered outlets in India and is the second-largest jewellery player in Maharashtra, making up 17% of all jewellery outlets in India. In FY24, the company's ROE and ROCE were 27.31% and 28.88%, respectively. Since the firm plans to increase the number of its stores to 51 by FY26, as well as increase foot traffic, transaction values, and debt reduction, we advise subscribing to the issue as it will favourably effect the company's bottom line growth in the upcoming fiscal years.

P N Gadgil Jewellers IPO details

The issue size would consist of an offer by SVG Business Trust to sell up to ₹250 crore and a fresh issue of ₹850 crore.

The jewellery firm plans to use ₹300 crore to pay off debt and plans to utilise ₹387 crore of the proceeds from the new issuance to open 12 shops in Maharashtra by FY26. The leftover cash will be used for routine business needs. As of February 29, the company's debt was ₹377.45 crore.

The P N Gadgil Jewellers IPO has Motilal Oswal Investment Advisors Ltd, Nuvama Wealth Management Ltd, and Bob Capital Markets Ltd as the book running lead managers, and Bigshare Services Pvt Ltd is the registrar for the issue.

P N Gadgil Jewellers IPO GMP today

P N Gadgil Jewellers IPO GMP today or grey market premium is +258. This indicates P N Gadgil Jewellers share price were trading at a premium of ₹258 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of P N Gadgil Jewellers share price was indicated at ₹738 apiece, which is 53.75% higher than the IPO price of ₹480.

According to the grey market activities in the last 9 sessions, the IPO GMP is showing an upward trend today, and a strong listing is expected. The GMP ranges from the lowest at ₹0 to the highest at ₹258, as indicated by experts at investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.