P N Gadgil Jewellers IPO
P N Gadgil Jewellers Limited is launching an initial public offering (IPO) to raise Rs 1,100 crores. The IPO opens for subscription from September 10-12, 2024 with a price band of ₹456-480 per share. The company offers a wide range of precious metal jewelry products under its "PNG" brand across 33 stores in Maharashtra, Goa and the US. Read through the below provided key details about the IPO, to find out the issue size, timeline, financials, and our recommendation.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Overview and Timeline
P N Gadgil Jewellers IPO is a book built issue of Rs 1,100.00 crores. The issue is a combination of fresh issue of 1.77 crore shares aggregating to Rs 850.00 crores and offer for sale of 0.52 crore shares aggregating to Rs 250.00 crores.
P N Gadgil Jewellers IPO opens for subscription on September 10, 2024 and closes on September 12, 2024. The allotment for the P N Gadgil Jewellers IPO is expected to be finalized on Friday, September 13, 2024. P N Gadgil Jewellers IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, September 17, 2024.
1
IPO Open Date
Tuesday, September 10, 2024
2
IPO Close Date
Thursday, September 12, 2024
3
Basis of Allotment
Friday, September 13, 2024
4
Listing Date
Tuesday, September 17, 2024
IPO Details and Lot Size
P N Gadgil Jewellers IPO price band is set at ₹456 to ₹480 per share. The minimum lot size for an application is 31 Shares. The minimum amount of investment required by retail investors is ₹14,880. The minimum lot size investment for sNII is 14 lots (434 shares), amounting to ₹208,320, and for bNII, it is 68 lots (2,108 shares), amounting to ₹1,011,840.
Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited and Bob Capital Markets Limited are the book running lead managers of the P N Gadgil Jewellers IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.
Price Band
₹456 to ₹480 per share
Minimum Lot Size
31 Shares
Minimum Investment (Retail)
₹14,880
Listing At
BSE, NSE
About P N Gadgil Jewellers Limited
Founded in 2013, P N Gadgil Jewellers Limited offers a diverse range of jewelry pieces crafted from precious metals like gold, silver, platinum, and diamonds. The "PNG" brand encompasses various designs and price points, catering to diverse tastes. The company boasts eight sub-brands dedicated to gold jewelry collections, two for diamond jewelry, and two for platinum jewelry. P N Gadgil Jewellers further empowers customers by offering bespoke jewelry creation, tailored to their unique preferences.
As of December 31, 2023, P N Gadgil Jewellers operates 33 stores, spanning Maharashtra, Goa, and the US, encompassing a total retail space of approximately 95,885 sq. ft. All stores are managed directly by the company, with 23 owned outright and 10 operated through franchise agreements. The company employed 1,152 individuals as of September 30, 2023.
Company Financials
P N Gadgil Jewellers Limited's revenue increased by 34% and profit after tax (PAT) rose by 65% between the financial year ending with March 31, 2024 and March 31, 2023.
Amount in ₹ Crore
Key Performance Indicators
The market capitalization of P N Gadgil Jewellers IPO is Rs 6514 Cr.
KPI as of March 31, 2024.
ROE
28.88%
ROCE
27.31%
Debt/Equity
0.74
PAT Margin
2.53%
Objects of the Issue
Funding New Stores
The Company plans to invest in opening 12 new stores in Maharashtra, expanding its retail footprint and reaching a wider customer base.
Repayment of Borrowings
A portion of the funds raised will be used to repay existing borrowings, improving the company's financial health and freeing up resources for future growth.
General Corporate Purposes
The remaining funds will be allocated for general corporate purposes, supporting ongoing operations, strategic initiatives, and future growth opportunities.
IPO REVIEW
P N Gadgil Jewellers Limited is a strong contender for the IPO market. The company has a rich history and a strong track record of growth, with a consistent revenue increase and profit after tax (PAT) growth.
The company is valued at a P/E multiple of 42.2 times based on the upper price band on the post-issue capital, which indicates high investor expectations. P N Gadgil Jewellers Limited is amongst the fastest-growing organized jewellers in Maharashtra, with a well-established presence and strong brand recognition.
They are also a leader in the industry, with a diversified product offering that caters to both traditional and modern preferences. Their product offerings cover the unique aesthetics and designs of traditional jewellery for special occasions such as weddings, engagements and festivities, as well as modern and functional jewellery designs for everyday wear purposes. They also have a well-developed distribution network, and a loyal customer base.
Considering these points, this IPO can be opted for both listing and capital gain.