P N Gadgil Jewellers Limited is making headlines as it launches its much-anticipated IPO from September 10 to September 12, 2024. The company is set to raise ₹1,100 crores, consisting of a fresh issue of 17.70 lakh shares worth ₹850 crores and an offer for sale (OFS) of 5.20 lakh shares amounting to ₹250 crores. This IPO has attracted a lot of attention due to the company's impressive growth trajectory and its prominent position in Maharashtra, India's largest market for BIS-registered jewellery outlets.

The IPO price range is set between ₹456 and ₹480 per equity share, with a minimum lot size of 31 shares. Retail investors will need a minimum investment of ₹14,880, while HNIs (High-Net-Worth Individuals) must invest in 14 lots (434 shares), amounting to ₹208,320.

The IPO’s subscription window is short, but the potential it holds is significant, given the company's historical performance and future plans. Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited, and BOB Capital Markets Limited are the book-running lead managers for this issue. The registrar for the IPO is Bigshare Services Private Limited.

Why is P N Gadgil Jewellers' IPO Important?

P N Gadgil Jewellers, often known as PNG, has grown exponentially in the past few years. They are the second-largest jewellery brand in Maharashtra, with the state housing the largest market for BIS-registered outlets in India. The brand has recorded rapid revenue growth, making it the fastest-growing organised jewellery player in India between Fiscal 2022 and Fiscal 2024.

In terms of financial performance, PNG Jewellers has shown remarkable growth. The company’s revenue surged from ₹25,863.05 million in FY22 to ₹61,191.04 million in FY24, marking a significant expansion. Likewise, its EBITDA increased from ₹1,419.83 million in FY22 to ₹2,774.26 million in FY24, reflecting an upward trend in profitability. This consistent growth has drawn the attention of both retail and institutional investors.

For those tracking the Grey Market Premium (GMP), it's essential to remember that while the GMP offers insights into market sentiment, no official trades occur through it. Therefore, it is not a reliable indicator for predicting the IPO's exact listing price. The GMP fluctuates based on supply and demand, and investors are advised to refer to official data for price discovery after the shares list on the exchange.

Subscription Status and Allotment

As of 12:00 PM on September 10, 2024, the live subscription status of the IPO indicates a positive response from investors. The subscription will close on September 12, 2024, with the allotment date expected on September 13, 2024. Investors can check their allotment status by visiting the registrar’s website or the BSE and NSE platforms. By entering their application number, PAN, or DP Client ID, investors will know whether they have been allotted shares.

Once the allotment process is completed, the shares are expected to list on the BSE and NSE around September 18, 2024.

How to Check Allotment Status:

To ensure you receive up-to-date information about your IPO allotment status:

Visit the IPO allotment status page.

Select P N Gadgil Jewellers IPO from the list.

Enter your application number, PAN, or DP Client ID.

Submit to view your allotment status.

Use of IPO Proceeds

The funds raised through this IPO will be allocated towards:

₹3,925.68 million will be used to set up 12 new stores in Maharashtra.

₹3,000 million will be allocated to the repayment or pre-payment of borrowings.

The remainder will be used for general corporate purposes.

Financial Performance and Valuation

Financial metrics show P N Gadgil Jewellers' robust growth and its valuation metrics are well-aligned with the industry. The pre-issue EPS is ₹21.59, and the post-issue EPS will be ₹11.37. With a pre-issue P/E ratio of 22.23x and a post-issue P/E ratio of 42.21x, the company is competitively priced when compared to the industry P/E ratio of 63.31x.

The company’s Return on Capital Employed (ROCE) for FY24 is 27.31%, while its Return on Equity (ROE) is 28.88%, further demonstrating its strong financial position and ability to generate returns for investors.

IPO Review and Investor Recommendations

Given the company's strong financials, market position, and growth prospects, analysts recommend that investors subscribe to the P N Gadgil Jewellers IPO for potential listing gains or long-term investments. With its expansive retail network, experience in the jewellery sector, and steady financial performance, PNG Jewellers has positioned itself as a solid investment opportunity in the organised jewellery market.

Moreover, the promoters, especially Saurabh Vidyadhar Gadgil, bring a wealth of experience, which is evident in the company’s ability to meet consumer preferences across different price points and jewellery designs.

To stay updated on the latest IPO reviews and financial news, visit our curated articles on the best IPOs to apply for this year.

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