PN Gadgil Jewellers IPO Shines On Debut; Lists At 73% Premium
During its subscription offer, the issue receives overall subscription worth over Rs 48,000 crore with nearly 60 times subscription
The initial public offering (IPO) of PN Gadgil Jewellers made a stellar debut on the bourses as the opened with 73 per cent premium at Rs 830 on the National Stock Exchange (NSE) against the issue price of Rs 480.
The Rs 1,100 crore IPO consisted exclusively of fresh issues up to Rs 850 crore and an offer-for-sale (OFS) worth Rs 250 crore by promoter and investor selling shareholders. The price band for the issue was fixed at Rs 456 to 480 per equity share.
During its subscription offer, the IPO lured strong interests from qualified institutions. Qualified institutions bid 136.85 times to the issue, while the retail category was subscribed 16.58 times. The issue received overall subscription worth over Rs 48,000 crore with nearly 60 times subscription.
Motilal Oswal Investment Advisors, Nuvama Wealth Management and Bob Capital Markets were the book running lead managers, while Bigshare Services was the registrar to the offer.
Expert Note
“India’s vibrant jewelry market is driven by a deep cultural affinity for gold, serving as a store of wealth, a hedge against inflation, and collateral for loans. The jewelry market's seasonality, with peak spending during weddings, festivals, and harvests, necessitates tailored marketing and localised product strategies. PN Gadgil Jewelelrs, renowned for its heritage and extensive product range, has established itself as a leading player. Given its strategic expansion, robust digital presence, and innovative marketing, PNG’s growth prospects are promising. Investors are advised to ‘maintain’ their positions with a medium to long-term view,” said Akriti Mehrotra, Research Analyst, Stoxbox.
IPO Objectives
The net proceeds of Rs 250 crore from the fresh issue will be utilised towards investment in 12 new stores in Maharashtra.
Additionally, the funds will also be used for funding capital expenditure requirements for purchase of equipment and general corporate purposes.
Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
PN Gadgil Jewellers registered the revenue of Rs 6,119 crore in FY 23-24 against Rs 4,559 crore in FY 22-23. While, the profit after tax (PAT) increased to Rs 154.34 crore in FY 24 against Rs 93.7 crore in FY 23.
Overall, the revenue increased by 34 per cent, whereas PAT climbed 65 per cent between FY 23 and FY 24.
