PN Gadgil Jewellers Share Price on listing day has offered IPO investors 73 percent return. PN Gadgil Jewellers IPO listed on NSE at Rs 830 for shares offered in price band of Rs 456-480 during IPO of the jewellery brand. The issue received a strong response from investors and grey market premium was going strong for this stock after the issue was oversubscribed 59 times.

PN Gadgil Jewellers stock has touched intraday high of Rs 848 till the time of publication of this report. On listing day, the stock was currently trading at Rs 797 (nearly 66 percent higher than offer price).

Jewellery retailer P N Gadgil Jewellers made a stellar debut in the stock market, with its initial public offering (IPO) subscribed 59.41 times. The company raised Rs 850 crore through fresh equity issuance, supplemented by Rs 250 crore from an offer for sale by SVG Business Trust. The proceeds will primarily be used to expand its retail footprint by opening 12 new stores in Maharashtra and to repay Rs 300 crore in debt. As Maharashtra's second-largest jeweller, P N Gadgil is well-positioned for growth, bolstered by a robust brand and diverse product range.

Strong IPO Demand Reflects Investor Confidence

The IPO of P N Gadgil Jewellers witnessed overwhelming demand, being subscribed 59.41 times. The issue was open for bidding from September 10 to September 12, 2024, with a price band set between Rs 456 to Rs 480 per share.

Capital Raised Through Fresh Issue and Offer for Sale

The IPO comprised a fresh equity issue worth Rs 850 crore and an offer for sale (OFS) worth Rs 250 crore by the existing shareholder, SVG Business Trust. The funds will fuel the company’s expansion and strengthen its financial position.

Primary Objectives: Expansion and Debt Reduction

P N Gadgil Jewellers aims to utilize Rs 392.5 crore from the fresh issue to open 12 new stores in Maharashtra, solidifying its presence in the state. Additionally, Rs 300 crore will be allocated for repayment or pre-payment of certain borrowings, while the remainder will be used for general corporate purposes.

Promoters’ Strong Control Post-IPO

Before the IPO, the promoters and promoter group held 100% of the company's issued and paid-up equity share capital. Post-IPO, their shareholding is expected to reduce to approximately 83.11%, indicating continued significant control.

Anchor Investors Bolster Pre-IPO Fundraising

Ahead of the IPO, P N Gadgil Jewellers raised Rs 329.99 crore from anchor investors on September 9, 2024. The company allotted 68.74 lakh shares at Rs 480 each to 33 anchor investors, demonstrating strong institutional interest.

Second-Largest Jeweller in Maharashtra

P N Gadgil ranks as the second-largest jewellery player in Maharashtra, with a diverse product portfolio that includes gold, silver, platinum, and diamond jewellery. The brand’s presence spans multiple channels, including retail stores, online marketplaces, and its mobile application, launched in March 2022.

Expanding Retail Network for Future Growth

The Rs 392.5 crore earmarked for opening 12 new stores in Maharashtra will enhance the company’s retail network and improve its market position. This expansion aligns with the company’s strategy to cater to growing consumer demand in key regional markets.

Solid Financial Performance Drives Optimism

For the fiscal year ending March 31, 2024, P N Gadgil reported a consolidated net profit of Rs 154 crore, supported by sales of Rs 6,110 crore. These strong financials underline the company’s robust business model and growth potential.

Debt Repayment to Strengthen Financial Health

With Rs 300 crore from the IPO proceeds set aside for debt repayment, P N Gadgil aims to enhance its financial stability. This move will improve the company’s leverage ratios and allow for greater operational flexibility moving forward.

Long-Term Investment Outlook for P N Gadgil Jewellers

P N Gadgil’s strong market presence, ambitious expansion plans, and solid financials position it well for long-term growth. Investors are likely to find value in the stock, supported by its promising retail expansion and brand strength in the jewellery sector.