PN Gadgil Jewellers IPO Overview
PN Gadgil Jewellers Limited’s initial public offering (IPO), which opened for subscription on September 12, 2024, has experienced an overwhelming response from investors. The IPO was subscribed a staggering 59.40 times, with a total of 100.30 crore shares bid for, against the available 1.68 crore shares on offer. This public issue aims to raise approximately Rs 1,100 crore, with a price band set between Rs 456 to Rs 480 per share.
IPO Subscription Details
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIBs) | 136.85 times |
| Non-Institutional Investors (NII) | 56.08 times |
| Retail Investors | 16.58 times |
| Total Subscription | 59.40 times |
Key Dates for Investors
The allotment of shares for the PN Gadgil Jewellers IPO is anticipated to occur on September 13, 2024. The listing of the company’s shares on the stock exchange is scheduled for September 17, 2024.
Details of the IPO
As part of this IPO, PN Gadgil Jewellers is issuing 1.77 crore fresh equity shares valued at Rs 850 crore, alongside an offer for sale of 52.08 lakh shares worth Rs 250 crore, primarily by SVG Business Trust. The minimum lot size for investors participating in this IPO stands at 31 shares, translating to a minimum investment of ₹14,880.
Usage of Funds
The funds raised through this public issue will be allocated towards various crucial aspects, including:
- Opening 12 new stores across Maharashtra (₹387 crore).
- Repaying existing debts (₹300 crore).
- General corporate purposes with the remaining funds.
As of February 29, 2024, the company reported a total debt of ₹377.45 crore.
Grey Market Premium (GMP)
In the grey market, PN Gadgil Jewellers’ IPO has been performing strongly, trading at a premium of ₹333 as of September 10, 2024. If this trend continues, shares may list at an impressive ₹813, potentially yielding a profit of around 70% for investors. However, investors should remain cautious, as the grey market situation can be volatile.
Company Financials and Growth Potential
PN Gadgil Jewellers stands as the second-largest organized jeweler in Maharashtra based on store count, with 33 outlets in Maharashtra and Goa and one in the United States. Of these, 23 are owned and operated by the company, while 10 are run as franchises.
In the fiscal year 2023 (FY 2023), the company witnessed a remarkable 34.8% increase in net profit, totaling ₹23.7 crore. Revenue surged by 76.4% to ₹4,507.5 crore, while EBITDA grew by 10.3% to ₹122.7 crore. Despite robust revenue growth, operating margins experienced some pressure due to rising input costs, leading to a slight margin decline of 1.63% to 2.72%.
For FY 2024, the company has already reported a net profit of ₹43.75 crore and revenues of ₹2,627.8 crore for the first half of the fiscal year (April-September 2024), indicating a positive growth trajectory.
Overall, PN Gadgil Jewellers’ IPO reflects strong demand and robust financial health, allowing investors to participate in its growth story in the jewelry sector.
