P N Gadgil Jewellers Limited, a leading name in the Indian jewellery industry, launched its initial public offering (IPO) today. It will be open for bidding until Friday, September 12. The price band is set between ₹456 and ₹480, with a minimum lot size of 31 shares for retail investors.
The company aims to raise ₹1,100 crore through this IPO. It comprises a fresh issuance of equity shares with a face value of ₹10 each, totalling ₹850 crore, and an offer for sale of equity shares with a face value of ₹10 each, amounting to ₹250 crore, from promoter SVG Business Trust.
The IPO of P N Gadgil Jewellers has allocated 50 percent of the shares to Qualified Institutional Buyers (QIBs), 15 percent to Non-Institutional Investors (NIIs), and 35 percent to retail investors.
The funds raised will be used in several key areas: setting up 12 new stores across Maharashtra, repaying or pre-paying existing borrowings, either partially or fully and for general corporate purposes.
Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited (formerly Edelweiss Securities Limited), and BOB Capital Markets Limited are the bookrunning lead managers for this offering.
In just three hours after opening for bidding, the IPO was fully subscribed, receiving bids for 1,76,53,756 shares against the available 1,68,85,964 shares, resulting in a subscription rate of 1.05 times.
All investor categories have shown strong interest in the offering. As of 1:30 p.m., the retail investors' portion was subscribed 1.50 times, while the non-institutional buyers' portion was subscribed 1.38 times, according to Chittorgarh.com.
The company is a leading player in the organised jewellery sector in Maharashtra, which is one of India's largest markets for BIS-registered jewellery outlets. As of January 2024, it is the second largest in terms of store count.
The 'PNG' brand is an extension of the historic ‘P N Gadgil' brand, which boasts a rich legacy dating back to 1832. The company offers a wide array of gold, silver, platinum, and diamond jewellery, catering to various price ranges and occasions. In addition to its predesigned collections, P N Gadgil also provides custom-made jewellery options.
PN Gadgil currently operates 39 stores in Maharashtra and Goa, and one location is in California, USA. By FY26, the company plans to expand with 12 new stores in Maharashtra.
It is recognised as one of the fastest-growing jewellery brands among key organised players in India, with a reported CAGR of 54.63 percent in revenue from operations between FY22 and FY24. The company's revenue increased from ₹25,556 million in FY22 to ₹61,109 million in FY24.
It operates under two models: company-owned and company-operated stores (COCO Model) and franchise-owned and company-operated (FOCO Model). Of the 39 stores currently, 28 operate under the COCO model, and 11 operate under the FOCO model. The company has plans to add around 12–15 stores in Maharashtra by FY26.
It has eight sub-brands that cater to gold jewellery collections for different occasions, two sub-brands that cater to diamond jewellery collections, and two sub-brands that cater to platinum collections, according to the company's DRHP report.
The P N Gadgil Jewellers IPO GMP today, or grey market premium, is +230. This indicates P N Gadgil Jewellers' share price was trading at a premium of ₹230 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 shares' was indicated at ₹710 apiece, which is 47.92 percent higher than the IPO price of ₹480.
The basis of allotment of shares for the P N Gadgil Jewellers IPO is to be finalised on Friday, September 13. The company will initiate refunds on September 16-17, and the shares will be credited to the Demat account of allottees on the same day after the refund process.
P N Gadgil Jewellers' share price is likely to be listed on BSE and NSE on Wednesday, September 18.
Ventura Securities and Deven Choksey have both given a ‘Subscribe’ rating to the P N Gadgil Jewellers IPO. Deven Choksey highlights the company’s advantageous position in a thriving sector driven by robust demand for gold, silver, and diamonds.
Operating in a culturally significant and expanding market, Deven Choksey expects the company to benefit from ongoing growth trends, including the rise of organised retail, increasing disposable incomes, and a shift toward branded jewellery.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
