P N Gadgil Jewellers stands as the second-largest organized jewellery retailer in Maharashtra, which is the largest market for BIS-registered outlets in India. The company has rapidly emerged as the fastest-growing jewellery brand among key organized players in India, based on revenue growth from Fiscal 2022 to Fiscal 2024. With a broad network of stores and a significant market presence, P N Gadgil Jewellers is well-positioned for substantial growth.

The P N Gadgil Jewellers IPO is a book-built issue amounting to ₹1,100 crore. This includes a fresh issue of 17.70 lakh shares valued at ₹850 crore and an Offer for Sale (OFS) of 5.20 lakh shares totaling ₹250 crore. The IPO subscription period is from September 10, 2024, to September 12, 2024. Shares will be allotted on September 13, 2024, with a tentative listing date on September 18, 2024, on both BSE and NSE.

Issue Details

Issue Price: ₹456 to ₹480 per equity share

IPO Size: ₹1,100 crore

Lot Size: Minimum 31 shares

Minimum Retail Investment: ₹14,880

Minimum HNI Investment: 14 lots (434 shares), totaling ₹208,320

Book-Running Lead Managers include Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited, and BOB Capital Markets Limited. Bigshare Services Private Limited is the registrar for the issue.

Grey Market Premium (GMP) for the P N Gadgil Jewellers IPO is anticipated to be between ₹290 and ₹310, suggesting potential listing gains of 60-65%. GMP figures are speculative and are derived from informal trading in the unregulated grey market. Investors should consider other factors in addition to GMP when making investment decisions.

Live Subscription Status
As of 04:00 PM on September 12, 2024, the IPO has been subscribed 59.15 times on its final day. This strong demand reflects high investor interest in the offering. For real-time updates, check the BSE and NSE portals.

Anchor Investors
P N Gadgil Jewellers has raised ₹333 crore from anchor investors at a price of ₹480 per share. Notable anchor investors include HDFC Trustee Capital, Nippon Life India Trustee, and Axis Mutual Fund Trustee. The allocation of 68,74,999 equity shares to anchor investors indicates robust institutional support for the IPO.

Objectives of the IPO
The proceeds from the IPO will be used as follows:

₹3,925.68 million for setting up 12 new stores in Maharashtra.

₹3,000 million for the repayment or pre-payment of borrowings.

General corporate purposes.

Financial Performance
P N Gadgil Jewellers has shown impressive financial growth. Revenue surged from ₹25,863.05 million in FY22 to ₹61,191.04 million in FY24. EBITDA also increased from ₹1,419.83 million in FY22 to ₹2,774.26 million in FY24. PAT grew from ₹695.15 million in FY22 to ₹1,543.43 million in FY24, reflecting solid profitability.

For the IPO, the pre-issue EPS is ₹13.08 and the post-issue EPS is ₹11.37. The pre-issue P/E ratio is 36.69x, while the post-issue P/E ratio is 42.21x, compared to the industry P/E ratio of 63.31x. The company's Return on Capital Employed (ROCE) is 27.31% and Return on Equity (ROE) is 28.88% for FY24, indicating strong financial health and growth prospects.

IPO Review and Investment Recommendation
Given the strong financial performance, high Grey Market Premium, and robust subscription demand, P N Gadgil Jewellers is a promising investment opportunity. The potential listing gains of 60-65% make it an attractive option for short-term gains, while its strong growth metrics and solid financials suggest long-term investment potential as well.

Investors interested in the P N Gadgil Jewellers IPO should consider applying for the issue, keeping in mind their risk tolerance and investment goals.

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