New Delhi:
The Initial Public Offer (IPO) of PN Gadgil Jewellers has opened for bidding on September 10, marking the fourth significant IPO launch of the week, following those of Bajaj Finance, Cross Limited, and Tolins Tyres.
The company aims to raise Rs 1,100 crore through this IPO, with the price band set between Rs 456 and Rs 480 per share.
Bidding will close on September 12.
Anchor Investors and Market Action
On September 9, just before the IPO opened, PN Gadgil Jewellers raised Rs 330 crore from anchor investors.
Notable contributors include ICICI Prudential Life Insurance Company, Tata Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, HDFC Mutual Fund, Goldman Sachs (Singapore), and Societe Generale.
In the grey market, the shares are currently trading at a premium (GMP) of around Rs 240, which is approximately 50% higher than the upper price band of Rs 480.
This suggests strong market expectations for a 50% premium upon listing.
Details of the IPO
The IPO consists of new shares worth Rs 850 crore and additional shares worth Rs 250 crore being sold by the promoter, SVG Business Trust, which currently holds a 99.9% stake in the company.
The proceeds from the new share issuance will be utilized as follows:
Rs 393 crore to open 12 new stores in Maharashtra.
Rs 300 crore to reduce debt.
The remaining amount for general corporate purposes.
As of March 2024, PN Gadgil Jewellers had a total debt of about Rs 397 crore.
Company Overview
PN Gadgil Jewelers specializes in precious metals and jewelry, including gold, silver, platinum, and diamonds.
Its products are marketed under the ‘PNG’ brand and its sub-brands.
As of July 31, 2024, the company operates 39 retail stores and also sells through various online marketplaces.
Share allotment is scheduled for September 13, with listing on the stock exchange set for September 17.
Company Profile and Listing Details
PN Gadgil Jewellers offers a range of precious metals and jewelry, including gold, silver, platinum, and diamonds, marketed under the ‘PNG’ brand and its sub-brands.
The company operates 39 retail stores and sells products through various online marketplaces.
Share allotments are scheduled for September 13, 2024, with the stock expected to be listed on September 17, 2024.
